December 23, 2020
Merry Christmas and happy holidays from our team at Canterbury Investment Management. This year has certainly been unique, filled with a high degree of uncertainty, but I hope everyone is able to take time to reflect and celebrate what is important to you.
While we do not subscribe to the idea of “seasonality,” the market appears to be showing strength towards retail stocks. The idea that the holiday season is the strongest for retail stores is being reflected in the markets. As it stands today, the retail segment of the market (which would be part of consumer discretionary) is the highest ranked segment in the market. Most notably, companies like Chewy (pet food), Stitch Fix (personalized styling), GameStop (video games), and Etsy (handmade items) have made strong contributions to the sector. Even more notable, out of those stocks, only Etsy is an S&P 500 company.