Major indices finish lower amid GE earnings disappointment >>> READ MORE

The 2 Best (and 2 Worst) Sectors to Buy Now

2013's hottest and coldest stocks could be in for more of the same

      View All  

Best Sector: Consumer Discretionary

Retail ShoppingYTD Performance: +32%

Retail stocks have been an area of surprise strength in 2013, with the Russell 3000 logging almost 32% returns for the sector since Jan. 1.

Small-cap Stein Mart (SMRT) is among the Russell 3000’s biggest winners. Stein Mart, a $600 million retailer of apparel, is up over 80% year to date.

The big guys have also done well, however, and it’s across all areas of the discretionary spending spectrum. Teen clothing king Gap Inc. (GPS) is up 40% so far this year, automaker Ford (F) is up 30% and appliance and electronics retailer H.H. Gregg (HGG) has soared by more than triple digits.

If you’re looking to play a rebound in spending and a broader cyclical recovery, clearly discretionary plays are the way to go. Funds in the space include the Vanguard Consumer Discretionary ETF (VCR) and the Consumer Discretionary SPDR (XLY).

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC