Stephanie Link: Macro Trends are Very Favorable for Retail Stocks

2014-10-10

Energy stocks have suffered losses as the underlying commodity continues to slide, but there is a bright side to that with consumer-friendly prices at the pump. Stephanie Link, Co-Portfolio Manager of Action Alerts Plus, tells TheStreet’s Jill Malandrino lower gas prices will provide a tailwind for retail stocks as consumers have more discretionary capital, but you still have to pay attention to jobs data and wage growth. Link took profits in energy stocks like Marathon and Occidental last month due to strength in the U.S. dollar, softening global demand for oil and oversupply and put that money to work in pockets of retail like Macy’s, PVH and Panera. Macro trends are turning more favorable for retail, comps are easier for Q14 and even more so in the first two quarters of 2015 and the companies are working on initiatives to improve their profitability.