Can You Guess This Stock?
Can You Guess This Stock? by Zach Scheidt – Daily Reckoning
Pop quiz — Can you name this stock?
I’ll give you a couple hints…
- This stock is in the red-hot retail industry.
- The company reported tremendous earnings this week.
- Strength is being driven by the vibrant U.S. housing market.
Did you get it?
The company is Restoration Hardware (RH), a home furnishing store that has been knocking it out of the park thanks to a convergence of two major trends in the U.S. economy.
If you bought the stock at the beginning of last year, you’d be up 500% on your investment today.
And the best news is that for RH — and so many other retailers in this industry — the fun is just getting started!
Have Money, Will Spend…
This is a great time to be selling luxury products to American consumers.
Ironically, as I write this alert, I’m sitting in my local Starbucks next to a table full of 9 different “entrepreneurs” discussing their business of selling luxury health products to consumers in our community.
With unemployment levels at extreme lows, wages ticking steadily higher, and inflation readings well within a “normal” range, Americans just have money to spend!
That’s exactly why the consumer discretionary sector of the stock market has been so strong, and why retail stocks like Restoration Hardware are on the move.
Across the board, I’m seeing strength in restaurant stocks, apparel stocks, athletic gear stocks, discount retail stocks, and even auto stocks!
Essentially any investment tied to consumer spending has a very good chance of producing significant gains this year.
Hopefully you’ve already been paying attention to this area and making money on your investments. After all, we’ve been pounding the table about retail stocks for months here at The Daily Edge.
Fortunately, even if you’ve missed out on this ramp in consumer spending so far, there’s still time for you to cash in.
Because today, there’s an additional trend that’s helping to push a specific group of retail stocks even higher.
Compound Your Gains with a Vibrant Real Estate Market
Are you in the market to purchase a new home?
Even if you’re not personally looking for a home to purchase, chances are good that you know someone who is. Perhaps even your children or grandchildren are getting ready to make their first real estate purchase.