When the federal minimum wage was first introduced in 1938, the government’s goal was to maintain a wage floor to keep Americans out of poverty and stimulate the economy through spending.
With greater minimum wage and more free money to spend, Americans may be able to spend, which may help boost a range of consumer-related sectors. [Minimum Wage Hike Could Boost Consumer ETFs]
AltaVista rates XLY underweight, meaning “funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.”
Consumer Discretionary Select Sector SPDR
