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Sell these stocks first as wages rise


While online retailers will likely get hit less by wage growth, ALL retailers will feel the pinch. Even purely online retailers will get hit as employees across the spectrum will enjoy wage growth. Big and small, all retailers will have to adjust to smaller margins in order to keep prices from rising, so it makes sense the overall sector will come under pressure. If you owned the SPDR S&P Retail ETF (XRT) in recent years, you are most likely looking at a gain on your position, which you may want to consider locking in and rotating to a new sector. XRT holds the biggest and smallest retailers, so it is vulnerable to wage growth. Consider reducing your position, or locking in all your gains and moving on to your next trade.


Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.