Why Consumer Discretionary could bounce back in Q4 2018

  • Consumer Discretionary was one of the top performing sectors through most of 2018.
  • However, the group sold off hard this month
  • But this recent pain, could bring strong gains to end the year.

Consumer Discretionary was one of the top performing sectors through most of 2018.

However, the group sold off hard this month, shedding nearly 8 percent during the first two weeks of the fourth quarter - lagging the rest of the U.S. markets.

But this recent pain, could bring strong gains to end the year.

Since 1990, the Consumer Discretionary has suffered similar losses to kick of Q4 on three other occasions.

Following those drops, the sector tends to bounce back - gaining an average of 7.6 percent through the remainder of the quarter, a positive trade in all three instances.