Retailers defy doomsayers

Falling commodity prices is not the only story worth pursuing, ASX’s retail sector performs well. The US Federal Reserve has ­capitulated to market pressure and gone dovish (less likely to raise rates), and other central banks are cutting interest rates (some to below zero), but all the talk of slowing world growth is bypassing the ASX’s retail sector which is looking stronger than many might have expected. On balance the retail stocks we like the most are Nick Scali, JB Hi-Fi, Wesfarmers and Woolworths, each of which is trading at a discount to or in line with our respective $4.90, $24.20, $41.70 and $23.30 valuations. (VIEW LINK)