How Retail Could Get Ravaged

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The money supply is on the move, that’s for sure… but not into consumers’ pockets.

Industrials, as tracked by the SPDR XLI ETF are up more than 24% over the past six months. Aerospace and defense, as tracked by the iShares ITA ETF are up nearly 20% in the same six-month timeframe.

That’s growth.

Those consumers I mentioned, on the other hand, are living paycheck to paycheck – roughly three in four Americans, as reckoned by a Payroll.org survey.

I expect that means trouble for the retail sector, as tracked by, say, the XRT ETF. It’s seen growth this year, too, but as the number of strapped Americans creeps… and then rockets… higher, it’s ripe for a fall.

And I see several juicy setups out there to play this decline…

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