While the pandemic was sure to cast a cloud over retail, one tailwind that could boost the sector is a forthcoming stimulus package. If Congress can agree to a deal before Christmas, consumers will be incentivized to open up their wallets and boost the Direxion Daily Retail Bull 3X ETF (NYSEArca: RETL).

RETL seeks daily investment results of 300% of the daily performance of the S&P Retail Select Industry Index. With its triple leverage, RETL gives investors the ability to:

  • Magnify short-term perspective with daily 3X leverage;
  • Go where there’s opportunity, with bull and bear funds for both sides of the trade; and
  • Stay agile with liquidity to trade through rapidly changing markets

RETL invests in securities found within the index, which is a modified equal-weighted index that measures the performance of the stocks comprising the S&P Total Market Index.

RETL Chart

Is More Stimulus On the Way?

With the presidential election and a vaccine already priced into the market, the biggest remaining question lies in a second stimulus package. A recent Forbes article by Rick Helfenbein sets the stage:

“In a just few days Congress will adjourn for the Holidays, and in that short period of time there may (or may not) be a successful economic stimulus bill,” the article said. “If there is no bill, or if there is a significantly reduced bill, then we are looking at coal in the stocking this year. There are currently more small-business retail stores boarded up and hugging the main streets of America – than there are actual white-bearded Santa’s in our nation’s shopping malls! Retail is in trouble.”

“It is clearly apparent that our incredibly divisive Congress, coupled with four difficult Trumpian years of governance, have added little respect for the fashion and retail communities,” the article added. “It is also clear that Congress is seemingly out-of-touch with small-business America. They don’t “get” what ails the community, and they really don’t understand (or remember) that retailers are the backbone of our economy. The National Retail Federation indicates that the retail industry has directly employed 32 million people and indirectly employed 53 million, making it the largest private sector employer in the United States.”

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