Click here: The Weekly Beacon – June 10 2022
We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.
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This weeks issue: Technology Sector, Retail Sector, Target Stock, Retail Stocks, Walmart Stock, Costco Stock, Retail Inventory, Goods to Services, Post Covid-19 Stocks, P/E Ratios, P/B Ratios, P/FCF Ratios, P/E Ratios, Gas Prices, Worlds Highest Gas Prices, U.S. vs. Canada Gas, Canada Oil Reserves, Janet Yellen, U.S. Treasury, Bad Calls, Inflation, Transitory, U.S. CPI for May 2022, Underinvestment in CapEx, Miners, Metal Shortages, Arab Spring 2.0, Baby Formula Shortages, OPEC.
Forget Tech, Look at Retail
We have mentioned in issues of The Weekly Beacon throughout 2022 why technology stocks have been hit the hardest. Valuations, rising interest rates, and even a shift from goods to services as we head out of Covid-19. Tech stocks have been smacked down. Whether it is a highly speculative fund like ARKK, a mega-cap company like Facebook, a Chinese tech company like Tencent, or a North American Internet ETF, everything is down and down pretty big.
All of the large companies in this sector are down more than the market and many significantly worse. The one sector that has quietly gotten hit almost as hard has been retailers. No, we are not talking about luxury retailers like Gucci or Louis Vuitton, we are talking about Brick and Mortar retailers like Target and Walmart.
A North American Retail ETF is down over 26% year to date while the S&P 500 (which has bounced) is down 12% year to date. Many technology investors in early 2022 may have rotated into these safe recession-proof stocks. Bad news for them, even though they might be recession-proof, they were trading at historic valuations at their peaks.
