Specifically, Reider contends that with oil prices remaining relatively depressed, compared to their late-2000s high, consumer discretionary space will enjoy a multi-year tailwind as consumers spend less on gas and are left more flush with cash. [Low Fuel Costs Finally Begin Supporting Consumer ETFs]
The U.S. dollar is just beginning its strengthening cycle, and BlackRock projects the trend is only in its early-to-mid stages. Consequently, as the USD continues to appreciate, import costs will fall and benefit consumers.
Moreover, the country is also eying minimum wages, with many high-profile retailers, restaurants and even several states looking into a higher wages for workers. As Americans see a fatter paycheck, people’s willingness and ability to spend could rise.
For more information on the consumer sector, visit our consumer discretionary category.
Max Chen contributed to this article.