Retail and gaming stocks could throw up a few surprises
Retail and gaming stocks could throw up a few surprises. Sean Fenton from Tribeca Investment Partners points to mixed signals from retailers and the drop in the price of petrol as potential wildcards in reporting season. Fenton says, there's really mixed anecdotes coming out of the Christmas shopping season... That's an area where there's probably going to be some winners and losers in terms of different stock. On the price of petrol Fenton says an impacts are typically spread evenly through the population with gambling stocks historically being beneficiaries. Definitely that drop in the oil price is going to play out through the economy, people compare it to an interest rate cut of 50 basis points. The interesting thing about the oil price is it is a lot more evenly distributed through the economy [than rate cuts] and more importantly to people with lower incomes. Historically you see more gambling with that boost to discretionary income.