by Jeff Berwick, Dollar Vigilante:
Still think everything is fine with the economy? If Wal-Mart is any indication then you have to seriously question that belief!
Here is a Year-To-Date chart of Wal-Mart’s fantastical ride down.
In just the last 10 months Wal-Mart has steadily fallen from above $90 to now below $60 for a total loss of approximately 35%. And it had a one day crash of 10% on October 14th.
Considering that Wal-Mart personifies the “low end” of the market, supplying cheap products to an increasingly impoverished American public… this does NOT look good if even Wal-Mart is in trouble.
Is Wal-Mart a good buy? Far from it. But you would never know that from the mainstream media which is doing its best to gloss over its disastrous corporate ineptitude and paint a pretty picture regarding the fall of America’s largest retailer.
This fall actually acts as a metaphor for the larger failure of corporate America. We’ve already examined the tumble of Wal-Mart, but now let’s look at the bigger picture….
From a high point of over 18,000 in July, the Dow plunged to nearly 15,500 in late August. And intraday, it lost over a thousand points. It’s climbed back to regain about half of its losses, but with October a little more than half over and two more months remaining, the chances of another “market event” before 2016 – and serious further unraveling – remain in the “highly likely” category.
Here at TDV, we anticipated this event via our study of Shemitah seven-year business cycles. I made my call regarding a disastrous market drop just before the Dow started to sell off in earnest.
We have a good deal of credibility based on our track record and various market strategies that have made significant profits for our newsletter subscribers. Bearing this in mind, I will tell you that Walmart probably cannot be seen as a “good buy.”
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