BALTIMORE (Stockpickr) -- You don't have to be a fashionista to see the benefits of owning apparel stocks.
Even though clothing and apparel stocks tend to have much more exposure to consumer whims than most consumer cyclicals, the flip side of that coin is the fact that apparel investments can outperform the market significantly when consumer spending ramps higher. That's especially true around the holidays, when clothing tops many Americans' gift lists. (Last year, for example, the apparel industry saw its holiday season sales hike nearly 10% higher.)
But that potential for volatility puts a big target on the backs of apparel manufacturers and retailers -- and that can create a prime opportunity for investors to profit from a short squeeze.
2012 Stock Predictions and Outlook
|Your one-stop shop for 2012 stock recommendations and market predictions.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV