Everyone shops, but where and how we shop has changed in ways that none of us ever imagined.
What has changed with our shopping habits and our retail landscape, once dotted with familiar names and good stocks to own, is the investment horizon… The pros and cons of retail investing today.
It’s not as easy as you think.
Not all retailers that look like they’re headed for oblivion will die off for good. Some will seek bankruptcy and disappear, and some will come back to life, rising like a Phoenix from the ashes.
The truth is, there’s a ton of money to be made trading and investing in so-called retail stocks if you know what you’re doing.
Here’s what the landscape looks like right now and how to see over the horizon to make smart bets…
The Growing List of Bankrupt Retailers
If you’ve heard the death threats shouted at retailers, you have an idea of what I’m talking about. Lots of them are in big trouble.
The list of retailers who’ve filed for bankruptcy is a long one. The most recent filers include
Then there are the retailers who’ve declared bankruptcy (some more than once), and are still around. Many are struggling mightily and will likely declare BK again before disappearing for good. Surprisingly, some down-on-their-knees retailers will turn around and be good short-term bets to ride higher.
I’ll tell you all about that group, with some intimate details, in upcoming articles here.
But today I want to talk about why retailers are suffering, and how to make money on the huge, dying set of losers who will have to declare bankruptcy, wiping out their equity holders.
Of course, the Internet is king of all disruptors. Looking at retail today requires looking at all retailers through the lens of Internet accessibility.
