Why 2018 could be the best year for retail in years
The retail industry is set to make a big comeback in the second half of 2018, according to CNBC analysts.
NBC Contributor Jan Kniffen, Oliver Chen, analyst with Cowen & Company, and other analysts discussed the retail resurgence and strength of the consumer.
“I think we are just having a really strong consumer,” said WWE CEO Jan Kniffen said on CNBC. “We have a strong consumer in May. And we have the tax cut running through Q3 and Q4, we didn’t have that last year, and that's both for the retailer as well as the consumer. It’s driving more business and the consumer has more money in their pocket. We are going to see a strong back half.”
To Larry McDonald, editor of the Bear Traps Report, there is one corner in the space set to benefit the most from a retail resurgence: Walmart and its peers.
"Every single time we've had a late-cycle development in the markets where tech starts really taking off in that late, late cycle, that's when you see a rotation into the Walmarts, into what's called the XLP, which are the consumer staples names," McDonald said Monday on "Trading Nation." McDonald continues by saying, “you're going to see very shortly here in the next six months a rotation out of big tech, and that money's going to move toward consumer staples, the Walmarts of the world and retail.”
The link to the CNBC video can be found here.
Health of consumer
Low employment 3.9% wage 2.7%
Themes: high end low end (walmart costco)
Unamaszonable “planet fitness”
Wealthier getting wealthy
Best consumer environment : strong consumer
Have tax cut -- running Q3 and Q4
Consumer has more money in pocket cause cut
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