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A Sector Where Few Dare to Go…

by Robert Williams, Publisher
Thursday, October 1, 2009

Have you heard the chatter coming out of the retail sector? Last week, Citigroup upgraded Macy’s (NYSE: M) to a “Buy.” And yesterday, Moody’s raised its broad outlook on U.S. retailers from “Negative” to “Stable.”

The respective upgrades serve as further proof that the economy is improving, which puts the onus on the Fed to figure out an exit strategy.

The Fed used unprecedented measures, including lowering short-term interest rates to near zero and buying a wide range of securities, to stabilize financial markets.

However, soon it’ll be time for Bernanke’s gang to reverse course. That means raising interest rates, withdrawing support from the credit markets and selling the securities it accumulated.

And when news of such action hits the wire, stocks – especially retailers – will likely be under extraordinary buying pressure.

That’s why Louis, who’s developing a habit calling turnarounds before they happen, is positioning himself ahead of the Fed’s inevitable announcement in his latest article.

Ahead of the tape,

Robert Williams

More on this topic (What's this?)
Bernanke’s Secret Debt Solution
SHOCKER: Fed set to print $1.45 TRILLION
Read more on Federal Reserve, Macy's Inc., Retail at Wikinvest
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Robert Williams, Publisher

In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has also served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution.

He's also been profiled in such books as Trade with Passion and Purpose and Alexander Green's The Secret of Shelter Island. Learn More...


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