Consumers Confidence Waning
Consumer confidence, as measured by the Bloomberg Consumer Comfort Index, fell for the first time in five weeks as Americans grew more concerned about the economy. And last week, it was reported that U.S. consumer sentiment worsened more than expected in June. High unemployment, rising food prices and falling home values are all weighing consumers’ minds, and could cause them to rein in spending even more in the future.
This is bad news for consumer stocks, especially the more discretionary ones, such as travel and hotel companies. There are two of those on our list of stocks to sell, as well as two electronics companies that manufacture a lot of products that we may want, but don’t necessarily need. And finally, two of the companies on our list of stocks to sell are actually food product companies, which just goes to show you that not all consumer staples stocks are created equal.
Here are six consumer stocks to sell: