What’s going on with the retail slump—and what should Main Street investors do about it?
Here’s one name you can take to the bank…
Retail sales declined 0.1% in December, according to the U.S. Department of Commerce. Although retail sales increased 2.1% in 2015, it was its weakest year for sales growth since 2009.
Is the consumer spending apocalypse upon us? Is GDP as we knew it gone?
In a word: no.
Yes, retail sales are off, but consumer spending—if you have eyes, ears and an open mind—is fine.
Here’s what’s happening…
Now more than ever, consumers with money are spending more on travel and celebration and less on stuff.
What does this mean for investors? Consider buying Expedia (NASDAQ:EXPE) stock.
Expedia lets you book at a great price, pay at the hotel, avoid rescheduling hassles and still collect points. This company is the 800-pound gorilla in the travel business, and their stock has sold off.
Bottom line: take a look at Expedia. If you buy it, sell calls. If you’re worried about the market, pick a fair price and sell a put.
(Michael Shulman owns EXPE shares.)