The Consumer Discretionary sector of the market is absolutely on fire lately. With the US consumer out spending in force, and completely confident in the US economy, the discretionary stocks are reaping the benefits. The M&A crowd has taken notice too. Just Friday we heard of a an activist position being built in Lowe's
The most common ETF to use to take a look at this space is the
Taking a look under the hood of the XLY we quickly can see that Amazon
The big holdings in the group are all performing the way an investor would hope. Home Depot
Many analysts are starting to suggest that the second half of the year will be when a lot of this starts to calm down or pullback, but we can look even closer. In the short term there is a run toward the consumer discretionary space and for now it is best to wait for a break in the bull rush.Remember, over extension leads to over paying, and no one likes to over pay.