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Rising oil prices can't kill the retail rally, Stuart Frankel's Steve Grasso says; shorting...

Rising oil prices can't kill the retail rally, Stuart Frankel's Steve Grasso says; shorting retailers because of crude gains "has proved to be the worst bet you could have made." Retail's up around 52-week highs (XRT +1.1%, RTH +0.4%) after most of this morning's same-store reports beat expectations, and Grasso expects more of the same through April and May.
Comments (9)
  • mrrln
    , contributor
    Comments (5) | Send Message
     
    Not true, not true! The "key" word here is "expectations". When expectations are low, they are easy to beat and novice investors are fooled. Eventually high prices at the pump will definately slow down retail.
    7 Apr 2011, 01:46 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3304) | Send Message
     
    Slow down the expected growth. One has to remember that gas prices are not at an all time high, and mpg are higher than they were a few years ago. With each energy "crisis", the effect on our economy lessens due to conservation.
    7 Apr 2011, 01:52 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Ahh Grasso...CNBC "darling". That's all needs to be said about that bulltard.
    7 Apr 2011, 02:03 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    Really.... Oil 110 is the start of the Bears range....
    7 Apr 2011, 02:11 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    To listen to the heard, you must follow the herd. Not a way to make money.
    7 Apr 2011, 02:15 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3304) | Send Message
     
    I can't figure out which herd leader to follow.
    7 Apr 2011, 02:18 PM Reply Like
  • mrrln
    , contributor
    Comments (5) | Send Message
     
    Update from my earlier comment ..... take note of the item posted recently. "There's no recovery visible at U.S. regional malls, as the Q1 vacancy rate jumped to 9.1%, the highest rate since Reis began publishing data on regional malls in 2000, from 8.9% Y/Y and 8.7% in Q4 2010. Stores are still being closed as long-term leases expire, so the bottom likely is not yet in sight."

     

    Need we say more?
    7 Apr 2011, 02:27 PM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    I think we all understand the limitations of the word, "can't". Rising oil prices CAN kill the retail rally but it hasn't yet. Whether it can kill it at current levels in time or at higher prices, it can.
    7 Apr 2011, 03:08 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3304) | Send Message
     
    Right, Duude. The question is, will oil prices respond quickly to a downturn in usage? More complicated now because the US is not the mega world user that it used to be. Europe actually uses less oil than it did several years ago, and the US, and please correct me if I'm wrong, has had steady usage over the last several years. Emerging economies are a different story.
    8 Apr 2011, 08:10 AM Reply Like
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