ONLN - RETL: I Will Wait Before Getting Aggressive On Retail

• Stocks in general are down this year, and retail has been disproportionately hit. This could have value investors interested.
• With labor gains, wage gains, and home prices on the rise, American consumers should be flush with cash - that would bode well for a leveraged retail fund like RETL.
• However, the story is not as rosy as it may otherwise seem. Inflation is eating a chunk of those wage gains, driven by rising oil prices.
• The housing story is also mixed. For long-term homeowners, the rise in home values is certainly amplifying a wealth effect. But for new buyers, or renters, rising housing expenses are grabbing a larger share of take home pay.

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