Recessionary Winds and Stretched Valuations: Is it Time to Abandon the Consumer Discretionary Sector?

Consumers have been fickle to say the least over the last few years. After the pandemic caused many to clamp down on spending, consumers have roared back. Experiences, dining out, and travel have all been top spending categories driving the discretionary sector.

Check out Best Consumer Discretionary Stocks list to explore all stocks.

But perhaps it’s been driven too far.

With valuations now stretched and recessionary worries growing, the sector could be ripe for a fall. For investors, it might finally be time to call it quits on the discretionary names and move into greener pastures.