Easy, isn't? You see two stocks are moving up handsomely in the past 5 years, KORS and DLTR and the other two down painfully, JCP and SHLD. Correct, but do you know what it means?
DLTR and KORS represent two ends of the American population: Dollar Tree (DLTR) is a discount retailer for low-income class and Michael Kors (KORS) is a luxury retailer for high-end class. Clearly in the current economic environment, both stocks are booming because they are targeting either poor people or rich people. So who is suffering? The middle class! Both JC Penny (JCP) and Sears (SHLD) are targeting the middle class and both are struggling for survival.
These trends will likely continue for a long time. DLTR is experiencing a correction and KORS is just breaking up. So both are worth considering for a long haul.
No comments:
Post a Comment