In 2016, The Major Industries In The United States Have A Promising Future. The Clothing Industry Will Continue To Be Depressed

According to top fund managers and analysts in the United States, consumer purchasing power is still strong in the case of low economic growth, which may make the consumer sector a good place to invest in 2016, but Clothing industry The market continued to be depressed and suffered from excessive inventory.

"The attitude of consumers is: I will continue to spend money, spend it when I am happy, and spend it when I am depressed," said Ed Yardeni, president of Yardeni Research. "Once again, the world has become very dependent on American consumers.

The participants in the Reuters Global Investment Outlook Summit said that falling unemployment, rising wages, low oil prices, low import prices and relatively low interest rates will encourage consumers to spend more in 2016.

A series of disappointing financial reports of retail enterprises, especially clothing sellers, are quite eye-catching. At the same time, the US government report suggests a slowdown in spending, which worries some investors.

However, the participants in this summit said that the change in consumption habits was one of the reasons why clothing enterprises were impacted, which did not affect other enterprises.

Mario Gabelli of investment company Gabelli&Co said: "My question is very simple: why don't people buy clothes? Is it the weather? Is it the tourism? Retailers such as O'Reilly are good, and retailers such as Home Depot also perform well."

O'Reilly Automotive is one of Gabelli's favorite companies, even though its share price has more than doubled since the beginning of 2014. O'Reilly owns more than 4400 auto parts retail stores.

Gabelli said that he also focused on "changing consumption patterns", for example, people now read ingredient labels more carefully. Therefore, he holds the shares of General Mills, a cereal food producer of Cheerios, as well as shares of Yoplait Yogurt, and recently bought shares of Annie's Inc, an organic macaroni and cheese manufacturer.

Increased consumer spending

At present, the Federal Reserve officials hinted in their speech this month that it may be the first time to raise interest rates in nearly 10 years.

In the minutes of the last meeting, the Federal Reserve indicated that as long as it still believes that the job market is stable, wages will increase, and inflation can rise to the Federal Reserve's goal, it is possible to raise interest rates in December.

Dean Maki, chief economic analyst of Point72 Asset Management under billionaire Steven A. Cohen, pointed out that consumer spending increased by 3.2% in the third quarter, exceeding the inflation rate.

"This is what should happen when the gasoline price drops: the overall inflation rate drops, and real spending accelerates growth," Maki said. "Consumer spending continues to be the main driving force for economic expansion."

Patel said that salary growth may prompt consumers to increase online shopping expenses and help entities such as Home Depot, a home repair retailer retailer Expand online sales. She is also optimistic about car sales.

Increased confidence of consumers

The prospect of apparel retail is quite different; When customers rush to buy low-priced goods online, Clothing retail Others suffer from excessive inventory.

The financial reports or forecasts released by Gap, Macy's, Nordstrom and other well-known apparel companies this month have disappointed investors.

The S&P Retail Select Index fell by as much as 18% from mid July to mid November, which was generally much higher than that of individual stocks.

"I don't think that the underperformance of these retailers can be attributed to weak consumption, because other businesses obviously benefit," Maki pointed out.

In addition, guests at the Reuters Summit also mentioned that consumer confidence is still strong. According to University of Michigan data, this year's consumer confidence index reached its highest level since 2004.