- Risk-on mode continues to dominate the broader market, and this has meant continued gains in consumer-oriented stocks.
- XRT has had a great year, and improving jobs figures and rising wages could certainly keep the gains rolling in.
- However, there are some reasons to be cautious. Rising wages also means the cost to employers goes up - which tends to be reflected in higher prices end consumers pay.
- In addition, rising oil prices will cut in to discretionary spend. As costs go up, we may see a bit of a slowdown in consumer demand.
For further details see:
XRT: Taking A More Cautious View Of The U.S. Consumer