Improving economy could boost retail stocks

As we see the economy start to strengthen during the fall and winter quarters, retail stocks could be an area that may benefit.

In August, the Concentrated Long Term GARP Portfolio returned 5.4%, besting the S&P 500 Index (SPX) which returned 4%.

There was a slight rebound in the stock of DigitalGlobe (DGI), along with a nice pop by Jamba Juice (JMBA) after it reported a more profitable quarter than last year.

Jamba Juice is a position we have stuck with for quite some time and hope to see the benefits of that persistence. I believe it is becoming a far more profitable company, and should also start to benefit from better growth in its franchising efforts in my opinion.

An improving economy would also play to Jamba’s positioning.

Retail stocks often take long time to reap benefits for investors. However, the potential gain can be significant with well-run companies.

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