Sell Retail – The Boom is Over
- By John Tierney
- 3 min read
In the year and a half since Covid struck, the best-performing major sector ETF has been retail (XRT) (Chart 1). Whether since the March 2020 crash, the election, or YTD, retail has outperformed even the sturdy tech sector (QQQ). (Table 1 at the end explains ETF sector tickers.)
That alone might justify our underweight recommendation in XRT. But underlying fundamentals strongly support this position too.
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