CHICAGO, Dec 31 (Reuters) – At this point, most investors
are peering over the fiscal cliff and feeling like Jimmy Stewart
in the classic Hitchcock film “Vertigo.” But if you look beyond
the precipice, there is some solid ground.
For one thing, the U.S. housing market will be better than
most people expect, which bodes well for patient investors
holding onto consumer-sector stocks. Most economists are not
predicting any startling jump in home sales or prices next year,
and they largely have not forecast how a housing rebound will
spill over into the wealth effect of increasing consumer
spending and job creation.
Home foreclosures in November hit their lowest rate in six
years, a trend that is likely to continue, according to
RealtyTrac, an online marketplace of foreclosure properties.
If the Obama administration can come up with a plan to stem
foreclosures or accelerate turnover of unoccupied properties,
that would reduce overall home inventories and boost sales and
Such a plan would also spur sales of appliances, vehicles
and other consumer durable and discretionary goods and services.
To make the most of this opportunity, consider the iShares Dow
Jones Consumer Services ETF or the Industrial Select