Don't Expect Retail Miracles From Back-To-School Season
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Hannah Slater Investors Observer.com |
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For the most part, school children around the US are back in classrooms this week. This is joyous news to their parents, but also is usually seen as a good time of the year for retail stocks that cater to children and young adults.
For the past month and even more, retailers have been bombarding us with TV commercials, print ads, and coupons in the hopes of enticing the back-to-school dollar through their doors.
Unsophisticated investors may believe that since many mothers and children are stocking up for the coming year, retail stocks will rise. The second-level thinker knows that the market expects this and will not rise just because it is back-to-school or Christmas season later in the year.
However, there is one step further that I am thinking.
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Hannah is the lead analyst for Investors Observer’s Quadruple Strategy Portfolio service and author of a weekly Analyst Insights article for subscribers of that service.
Hannah is a no-nonsense, sharp-witted market whiz, and she’s not afraid to take a few risks. Always striving to outperform others in her field, her Quadruple Strategy Portfolio aims to multiply an initial investment to four times its original size, and she’s had a lot of success with this strategy so far.
Her weekly Insight articles will give you some clues about what factors she’s weighing as she picks her winning trades. Hannah likes to thank her readers each week with bonus trade ideas at the end of each installment. Here’s a case where it literally does pay to pay attention.
Q&A
Name: Don
Subject: Monsanto and other companies experimenting in genetically modified food
Q: Considering the world wide distaste/distrust, and many countries’ laws disallowing genetically modified seed and food, what would be the long term financial outlook for companies like Monsanto, who have directed much of their assets to GM and may have a heavy lawsuit liability in the near future. (GM food found recently to cause death in many animals and is under government review world wide to ban this unproven technology.) Should a smart investor avoid these companies? Thank you. Don
A: Don,
This is not a topic that I have done thorough research on recently, so I would not presume to answer your question as if I had.
On a more general note, one can find risks in almost any stock out there. Whether you should invest in a particular stock or industry with obvious known risks is a decision that only you can make based on your risk/reward tolerance.
- HS