As interest rates rise and consumer confidence wanes its always worth keeping our finger on the pulse on the retail sector which will give us a decent read on how things are looking within Australia. The uncertainty towards rising interest rates and to a lesser extent an election is a tough backdrop for discretionary spending and that’s exactly what we’ve seen of late with HVN making fresh 2022 lows last week, at this stage we see no reason to fight the trend even if value is clearly appearing after the recent weakness – overnight it was the weakest sector falling over -2% as people on the street are expected to baton down the hatches until economic certainty returns.
MM is neutral HVN
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