Amid a strengthening consumer, the retail sector is poised for growth, one strategist said. ‘Consumers had largely gone into hibernation,’ said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. ‘We think the retail sector will see a rebound, but it will be very important to choose your points, though we’ve also been seeing consumers buy more durable goods.’ Retail stocks have been quite erratic as of late, though names like Lululemon (LULU) reported better than expected earnings earlier this week and Under Armour (UA) rallied in early June amid an analyst upgrade, citing the potential for higher earnings throughout 2015. But amid a rising interest rate environment, Wiegand is staying away from stocks in the utilities and telecom sector. ‘These sectors are sensitive to higher interest rates,’ Wiegand said. Yields on the benchmark 10-Year Treasury stand at 2.36 percent, compared to 2.12 percent at the start of the year. The Federal Reserve is expected to lift short-term rates higher for the first time in nine years during its meeting in September. But there is a winner amid the Fed’s looming policy shift: financials. Higher interest rates bolster margins for banks. TheStreet’s Scott Gamm spoke with Wiegand.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
