Retail stocks outperformed in August, but history says that trend may not last much longer
This shortened Labor Day holiday week, if you're not still on vacation, you might be looking for deals on clothes or TVs, but consider investing in the retail industry itself. Retail has outperformed the broader market.
According to Kensho, over the last decade, retail has gained an average of more than half a percent, trading positively about 70 percent of the time. But, this year, don't go on a buying binge beyond that.
Consumer discretionary was the second-best performing sector in the month of August - gaining nearly five percent, but history indicates that likely won't last.
Since 1990, when the Consumer Discretionary sector has gained more than 4% in the month of August, the sector is usually down in September by more...losing an average of -4.7 percent and trading lower more than 75 percent of the time.