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.
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