August 1, 2021

Retail Stocks Look Like Winners as the Economy Rebounds

This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s.

Driday Stock Ticker
Frank Financial Concepts
July 16: The Covid-19 pandemic was a rare historical event that had a devastating effect on the stock market. Hit especially hard were retail stocks. The pandemic turned shopping into a predominantly online experience, which was bad news for brick-and-mortar stores, but good news for retail overall. The initial prognosis was grim, with over 8,300 U.S. stores closed in 2020 and 400 stores announced to close in 2021.

Many investors holding retail stocks took losses during the pandemic. We decided to hold on; we added to our existing positions, and even added some new ones. One reason for this was that we considered the pandemic to be a temporary event. The other reason was that we took a careful look at…

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