Very short post. I just want to illustrate that the falling dollar and increasing prices of natural resources are not necessary inflationary:
Wal-Mart is cutting prices on 15,000 more items this week
Most of the items sold at WalMart are imported, and it is definitely paying the full gasoline bill to transport those items. Does it mean that the prices are bound to increase? No, the consumer doesn’t give a $hit about WalMart costs, what he wants is lower prices. And, as no retailer has a pricing power now, WalMart has to swallow all the costs. Lucky it can
October 20, 2007 at 12:52 pm
Roxy,
As Wal-mart is already the low cost provider in most items, what does it’s early price cuts portend for the Q4 earnings for retailers in general?
October 20, 2007 at 9:59 pm
Here’s the ratio of retailers to S&P:
http://stockcharts.com/h-sc/ui?s=XRT:$SPX&p=D&yr=1&mn=6&dy=0&id=p90083158374
Obviously they are in the downtrend sinse April no slightest doubt