Retailers are doing ok and 2 stocks to play this theme
Domestic retailers enjoyed a robust trading period through the end of 2015 and this strength appears to have continued into the early part of 2016. Matt Haupt, Portfolio Manager at Wilson Asset Management, says Australia remains in a reasonably good position with underlying economic conditions remaining tough but not deteriorating. He puts the recent strength in retailers down to three factors. 1) Rising property values over the past 24 months; 2) Low petrol prices and; 3) Record low interest rates. "When you speak to the retailers they say the two things that drive retail sales are interest rates and petrol prices. And we're seeing both of those at historical lows at the moment - so we are quite confident on the consumer." In this video Haupt shares two stocks that he is following to play this theme and explains what he sees as the catalyst for a re-rating in one these companies.