Wal-Mart versus Oil Prices
Its no coincidence that as Oil has reached multi-year highs, Wal-Mart has tumbled to multi-year lows.
Thats the dominant impact of higher energy prcies (gasoline in particular): It takes some jingle out of the pockets of those most price sensitive, budget conscious consumers. (Yes, it hits Target also, but I suspect not nearly as much).
click for larger chart
click for larger chart
What's somewhat astounding is how long it took for the high Oil prices to actually fully work their way into Wal-Mart's stock price. (That's the efficient market for ya!)
Wednesday, April 27, 2005 | 12:20 PM | Permalink
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The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse. [Read More]
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» The Big Picture: Wal-Mart versus Oil Prices from The Stalwart
The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse. [Read More]
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Comments
Retailers have about the strongest negative correlation with inflaiton of any S&P industry.
Inflation hits retailers through their margins,
sales and PEs.
Posted by: spencer | Apr 27, 2005 3:30:43 PM
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