When it comes to consumer stocks, it’s the best of times and the worst of times.
On the plus side, consumer sentiment is strong. The Conference Board’s measure of consumer confidence hit a 16-year high a few months back, and there’s little sign of a slowdown. July retail figures released a few weeks ago were the best they’ve been all year.
Yet retail and consumer stocks have been toxic despite these broader metrics. The SPDR S&P Retail ETF XRT, +1.35% , for example, is down more than 15% in the past two years vs. a 25% gain for the S&P 500 SPX, +0.20% ; this year so far the fund is down 10% vs. a 10% gain for the S&P 500
