What the experts say

‘New normal’ for retail

Citigroup retailing analyst Deborah Weins­wig says that “conspicuous consumption is definitely out,” said Lawrence Strauss in Barron’s. Post-recession, a “new normal” in shopping habits will mean that investors need to show the same diligence in picking and choosing retail stocks that consumers do in clipping coupons. One store with a compelling case, Weinswig says, is Kohl’s, which offers consumers more value than Target but better styles than Wal-Mart. Home Depot is another standout: The do-it-yourself trend “is very big,” and the company recently did a major remodeling of its merchandising tech­nology. Costco, on the other hand, is no bargain.­ While the company does a good job of catering to the cost-conscious customer, the stock is just too expensive.

Cashing in on savings bonds

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Now might be a good time to “dust off” those old Treasury bonds you got from Grandma and Grandpa decades ago, said Anna Prior in The Wall Street Journal. More than $16 billion in matured savings bonds are currently outstanding, according to the Treasury Department. The bonds don’t expire, but they do stop accruing interest once they mature, and they can’t be traded or sold. “You can only redeem them.” If you have electronic bonds, cash them in online at TreasuryDirect.gov. If you have the old-fashioned, paper bonds, the best thing to do is take them to a bank branch. Before you do, however, “be sure to check the value of your bonds” using the calculator at TreasuryDirect.gov.

Direct flight to foreign currency

“Investing in foreign currencies is tricky for the average person,” said Katie Benner and Beth Kowitt in Fortune. These days, the performance of foreign stocks is far too closely correlated with those of U.S. stocks to offer a good hedge, while foreign bonds expose you to interest-rate risk. Enter exchange-traded funds. The SPDR DB International Protected Bond ETF, for example, tracks inflation-linked bonds issued by other countries, offering indirect exposure to foreign currencies and interest-rate protection to boot. Want to hedge against a specific currency? Many ETFs ­target a single currency, effectively converting your dollars to foreign tender. When used in small doses and for specific purposes, such funds are useful. Just don’t bet your retirement on them.