About 5 years ago, maybe a little less, but at this point I don’t feel a sense of obligation to go through my data, I was way over invested in retail.
As someone who really does believe in diversity, I wasn’t too happy about carrying that much retail liability, especially as those shares weren’t faring too well.
Like just about everything else, there are periodic ups and downs.
Individual stocks behave that way, as do sectors.
Ultimately, those worked out pretty well, or at least they were masked by everything else during those years, because from 2008, yes 2008 all the way through 2014, pretty much everything made money.
Over the past 2 weeks, though, if you were holding retail, you probably weren’t a very happy person for the most part.
Basically, just about anything that in any way has to compete with Amazon has had a rough time of things.
And so as this retail season has now passed that stage that national retailers have finally reported their earnings, there have been a lot of brutal reactions.
Retail seems like dead money right now on Wall Street, as markets have surged since Election Day.
I don’t have any hopes for the likes of JC Penney or even Macy’s to survive the pressures facing all retailers in the longer term, but in the shorter term, the market’s reaction seems way over the top.
In the past 2 weeks I’ve had the compelling need to purchase shares of L Brands, Target, Best Buy, Abercrombie and Fitch and Kohls.
L Brands has 2 weeks to go and is nicely in the money. Hopefully it will be assigned or at least in play for a rollover, although since it has only monthly options, I would like to get my money out.
Best Buy and Abercrombie and Fitch were both assigned and the latter paid a nice dividend.
So that was good.
Kohls, which I purchased in the final hour or so of the week’s trading is ex-dividend on Monday and is again trading weekly options, so I’m hoping to milk it while i can, but wouldn’t mind closing the position.
Target was a disappointment as it followed retail lower today, after having taken a tremendous drop following earnings. AS trading opened this morning I thought that there was a decent chance for shares to be assigned, but then the sector just fell apart.
That drop was so unexpected and, I think, unwarranted, that I decided to not even attempt to rollover the position, expecting a rebound next week.
That is, as long as the overall market doesn’t decide to question its ascent.
Still, retail continues to look so good to me if short-term trades are in focus.
Next week, I have my eyes on Macy’s and wouldn’t mind adding shares of Best Buy and Abercrombie and Fitch again.