Over the past decade, when gasoline prices have been
falling, year-on-year same-store sales gains at Wal-Mart have tended to outpace
the growth in overall retail sales and vice versa.
Relative
Walmart Sales versus Gasoline
click for much larger chart
>
Source: Michael Panzner
While
it is not necessarily causal, it lends some credence to the idea that the
working-class customers of the nation’s largest retailer adjust their spending
in response to what they must pay at the pump.
>
Items:
prices plummet as demand falls
predict bad news for big media
the U.S. could beat the gloomy projections
Why U.S. Telecom Has Fallen Behind
on the read/write web
>
Quote
of the Day:
“There is no cure for birth or death save to enjoy the
interval.”
–George Santayana
Oil Contrarianism
Jeff Matthews offers a simple observation about the world’s oil market:There’s Nigeria (10% of U.S. crude oil imports), which is run by a “former military ruler” who was about as “freely elected” as Saddam Hussein back in his glory days
Barry,
Excellent work and yes it’s boomerang time. Whether it be high oil prices, terrorist activity or global pandemic, or a combination of the above? Take your pick.