Why Retail Stocks Sank In Trump’s First Year In Office
The broad market surged during Donald Trump’s first year in office, as the S&P 500 gained 24% in the year starting from the president’s inauguration. A booming economy, and excitement about the tax bill that was finally signed into law in December, helped propel the market to a blowout performance in Trump’s first year. However, retail stocks widely lagged the broader market; the SPDR S&P 500 Retail ETF gained just 11% during that time and was trading lower for most of the year. Through Nov. 9, the retail ETF (exchange-traded fund) was actually down 8.6%, but a strong round of third-quarter earnings reports helped retail stocks rebound, and that momentum continued through the passage of tax reform and a successful holiday season. Still, retail stocks have clearly lagged the market, and some retailers have been downright crushed. Let’s take a look at some of the forces that have pushed retail shares down over the last year. Read more at The Motley Fool.
