Investing in Retail? - Consider Protection with Stock Options | PowerOptions Web Log
The retail sector has seen some dramatic declines over the last six months. People are losing their jobs, their houses are being foreclosed, and wages have become stagnant. All of these factors spell doom for the retail sector. During a recession, people still spend money they just spend less and often spend it at discount retailers. Some of the best discount retailers include names like Wal-Mart (WMT), Big Lots Inc. (BIG), Family Dollar (FDO), and Ross Stores (ROST). These companies should survive just fine. With that said, 90% of the retail stores will not be fine and should see dramatic declines in key indicators such as their same-store-sales and sales-per-square-foot, which will lead to declines in their share prices. I am not advocating that investors put their money to work in the retail sector, but if you must, the discount retailers would be your best bet. Wal-Mart (WMT) operates discount...
Post to Tumblr