SPDR S&P Retail (ETF) (AMEX:XRT)

MBfool (< 20) Submitted: 4/29/2008 10:44:08 PM : Start Price: $31.42 XRT Score: +91.09

The mortgage crisis appears to be manageable finally. Fed cuts and other innovative measures by Bernanke et al helped the banks and financials. The recession appears to be mild (despie the Oracle's pronouncements to the contrary), unemployment is still low and the fed appears poised to take measures to contain inflation and strengthen dollar, which would make the oil and commodity prices to recede. With the federal government sending out the tax rebate checks starting Monday, I expect more buying in the retail stores of clothing, shoes, household goods, electronics and such. Unemployment still is relatively low and the fed tax rebates should help. Sector approach may be better in the current scenario of beaten down companies than picking individual stocks. XRT has names like Target, JC Penny, TJX, Tween Brands, Urban Outfitters, Wal-Mart, Zales, etc. It is the right time to buy retail (along with financials and tech of course!).