Why It’s Time to Sell the Consumer
Earlier this week, we learned that consumer confidence soared in April. And while the news is much appreciated, the move seems
to be in response to a two-month surge in stocks versus any real strength on the home front.
The jobs market is still poor with wages stagnant or declining. Corporations are still in lay-off mode, and oil prices are marching
ever higher. In other words, there are still hurdles to overcome before the “all clear” can be given.
I don’t mean to rain on the parade of recovery, but let’s not get too far ahead of ourselves. Stocks tied to the consumer have
already left the station. Some are up double or triple from the lows set just two months ago.
Economic growth, on the other hand, is expected to be anemic, at best, well into 2010 suggesting that the stock gains of late
have more to do with short covering than any lasting positive growth trends.
As such, now might be a good time to take some money off the table. In addition, the summer months are traditionally slow for
stocks. I would have no problem selling any number of stocks, especially those with huge gains in such a short period of time.
Here are five consumer stocks to sell now…