Is it safe to invest in the U.S. consumer? Some investors must think so. From Feb 23, 2012 to May 25, 2012, XLY has outperformed SPY by 4.23% (price returns)--that's for less than three months. Over the same period, OIL was down 16.8%. Lower gasoline costs and the housing situation no longer accelerating to the downside could explain why retail sales have been reasonably resilient considering everything that's going on with de-leveraging, high unemployment, and daily doom and gloom coming from global factors.
So what do you think, is it safe?