D. McHattie

Expect Retail Bankruptcies in January

You could see this retailer bankruptcy train coming from a mile away. Proshares has an ultrashort etf (SCC) that shorts the whole consumer services sector (retailers, hotels, restaurants, airlines).

The only question in my mind is, with many of companies in the consumer services sector already having experienced massive declines in their stock prices, will they all, on average, fall further? I have to think that the answer is 'yes'.

I expect that when the preliminary december numbers come out we'll know exactly which retailers are doomed, even if it takes a few months for that doom reach fruition. Continued stock price declines in this sector in january should precede the actual chapter 11 declarations in feb, mar, apr.