A Sloper was kind enough to send me the following idea this morning, which I wanted to share:
Walmart is benefitting from 2 major events:
1. The recent significant drop in gasoline prices (50+%) helps the low income segment of the population the most since they spend most of their income on the basics. Less fuel expenses leaves more for other things. Some of this goes to Walmart.
2. The strong dollar lowers the costs to importers and reduces the income of exporters. Walmart is a big importer.
Maker and seller of all-things-leather Coach is doing something interesting with its chart: looking close, you can see it has been trapped in a rather narrow range between about $33 and $37 for many months…..
I’ve always had a fondness for shorting Abercrombie & Fitch. They just strike me as a purveyor of overpriced, overly-hippified, totally ghey clothes to brainwashed young people. Don’t shoot. Let ‘em burn.
Perhaps the insatiable U.S. consumer is actually started to get sated after all.
Note from Tim: My long-time colleague “molecool” did a post on his Evil Speculator blog that I thought was outstanding. Although I am somewhat called on the carpet (and rightly so), his post is written with class and plenty of wisdom. I appreciate mole posting it here………
Yesterday Tim Knight wrote a candid post marking the fifth anniversary of the ongoing bull market. Actually to be more precise he not so surprisingly called it ‘this insane, interminable, agonizing bull market‘. Now given my reputation for dishing out generous servings of tough love you may expect me to post a scathing retort criticizing him for clinging to his bearish stance all through what I believe will be remembered as the most significant bull market in our lifetime. Well, yes and no. (more…)