4 Funds To Benefit From Labor Day Weekend Sales

With Labor Day weekend around the corner, American consumers are looking up attractive deals to stock up on their favorite products. Americans could also plan a quick getaway this weekend, thanks to airline deals and hotel discounts.

Restaurants and cafes are expected to have greater footfall this holiday weekend as well. Therefore this could be an ideal time to buy mutual funds that invest in stocks well-positioned to benefit from this spending spree.

American Consumers’ Going Strong

Thanks to the impressive number of jobs created in July, there has been a remarkable rise in consumer spending. First, consumer spending was rather strong in the quarter ended June 2019 with Americans spending more on dining out, clothes, cars, and trucks apart from participating in other similar activities.

Consumer confidence was reported at 135.1 in August, higher than analyst expectations of 128. Disposable personal income for June increased 0.4%, indicating the rise in household spending.

Finally, wage growth along with an unchanged unemployment rate in July has definitely boosted consumers’ spending.

Attractive Retail Deals to Boost Stocks

To bank on consumers’ readiness to spend this holiday weekend, retail giants have already come up with a string of offers and discounts. Big houses such as Amazon and Walmart are already offering notable discounts on everything from electronic products to cosmetics and mattresses.

Nordstrom, which is a chain of luxury department stores, is also offering discounts on apparel, footwear, and fashion accessories, etc. Sephora, Lowe’s, Best Buy, The Home Depot, Dell and Lenovo are offering great deals amid other companies as well. Therefore one can expect sales to soar this Labor Day weekend along with stock prices of such retailers.

Our Choices

We have, therefore, selected four mutual funds that invest in consumer discretionary, retail and leisure companies. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5,000.

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