A diary of the thought process behind my investment decisions
The Retail Mystery
I find it amazing that the retail sector is sitting within spitting distance of its 2010 highs, given the state of the economy and unemployment. Right now all that seems to matter is that the fourth quarter was good and that comps will be easy for the first half of the year. However, come the second half comps will get tough. The air is getting thin at these valuation levels. I am long the reasonably priced Gap Stores and short XRT calls. Gap will be reporting earnings tonight.