Most are in the retailer sector
Most stocks are in the retail sector. That has to do with the simple fact that I foresee that the retail sector, as it exists today, will become obsolete in the near future. Stores are downsizing, while the big retailers such as BEST BUY (BBY), another one on my 'blacklist', get a lot of 'lookers', those who use the place to scout out the products that they eventually are going to buy for way less online. That's is also where the change is happening. Online shopping is becoming more and more popular, renting movies online is something that's common now, who needs a video store for that? That same trend goes for non-food stores, and mainly luxury items such as electronics, clothing and jewelry. Huge (Outdoor) shopping malls will eventually become a thing of the past, so I'm aiming on stocks that can be affected in this scenario like Macy's (M), Sears (SHLD), Nordstrom (JWN) and such. In the near future these companies will have to severely downsize if they want to survive, but that is not necessarily a bad thing. Sure, you won't be able to house as many products, but you will save a lot of money on heating/cooling costs, rent, transportation, wages etc. These are savings on guaranteed expenses.
Despite the fact that some of these stores adapt to online selling, like Sears, the downward trend seems to continue - which is not a good sign at all, it reminds me of Blockbuster and their last attempt to survive by offering DVD's in the mail, like Netflix. This is not to say that short- mid- term trades will not be profitable. Of course there are short term buying opportunities that these stocks offer, but I wouldn't want to invest in Best Buy for example.
Here are the ten stocks (in no particular order) that I absolutely do not want in my portfolio:
- Best Buy (BBY)
- Radioshack (RSH)
- Sears (SHLD)
- Macy's (M)
- Steinmart (SMRT)
- Urban Outfitters (URBN)
- American Apparel (APP)
- Sprint (S)
- Tiffany & Co (TIF)
- Rite Aid (RAD)
Then which sectors should I put my money?
On the other hand, these are the sectors and companies that do have growth potential, like healthcare (THC) and technology (AAPL), also the food sector has many opportunities (MCD), but again - stay away from retail!