Target Practice

Sometimes you have to take advantage of a macro call to buy individual stocks. This morning Goldman Sachs downgraded the retailers. That's a correct call if you think that consumer spending is slowing.

I like Target(TGT Quote), the old Dayton Hudson. I don't like its prospects for today. I like them for next year, because I think the expansion in the Northeast is going to make Target the next (WMT Quote).

So I am buying Target. It is down four because of this call. Could it go lower? Sure? Will I like it even more if it goes lower? Yes. Will I buy more? Indeed.

Time horizon is important to me. But so is price. Sometimes price supercedes time horizon. It forces you to act. If Target is doing poorly that would be one thing. It isn't.

That's why there is opportunity.