Wednesday, May 13, 2009

Buy stocks on this weakness from the poor retail sales number

Investors are all over the market today selling on this morning's weaker than expected retail sales report. However, smart investors should be buying.


Because about 40% of the time retail sales are down in April versus the prior month. That's because tax collections leave people with less disposable income.

See chart.

On the flip side of that, however, is the fact that about 70% of the time retail sales in May are up versus April.

So, take some easy money from investors who are selling today and BUY STOCKS!! Best advice of all: BUY RETAILERS!! If you want to make it easy on yourself just buy the Retail Holders Trust (RTH)

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