The “Sane Choice” in Retail
Just how weak is retail? Jeff Macke and Howard Davidowitz of Davidowitz & Associates had differing views on Thursday’s “Closing Bell.”
Investors would be wise to drastically reduce their exposure to the retail sector, Davidowitz said. December will be tough, even with a Christmas bounce, but “it’s going to get a lot worse next year,” he said.
Jeff Macke, known for his overall bearishness on retail, said that there could be some stocks amidst the rubble that are worth owning, if only for the tailwinds from a “Santa Claus rally” going into the holidays. He would buy best-of-breed names like Target (TGT) or Costco (COST) or even Gap (GPS) because expectations there are so low.