Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

Walmart’s Warning for the Economy

Since last week: 

The S&P has been on a losing streak this past week and has been range bound for months. Some are hoping a turnaround is near. 

1. Walmart’s Warning

Walmart recently issued a warning that it expects consumers to pull back spending over the coming months. The world’s largest company by revenue is something of a bellwether on consumer sentiment and it believes consumers will spend less thanks to tough economic conditions. This is another signal that things could be rough for the next few months, so you want to invest to protect your wealth accordingly. 

2. Bipartisan Nukes

For once, politicians on both sides agree on something. U.S. Senators Joe Manchin, John Barrasso and Jim Risch introduced the Nuclear Fuel Security Act (NFSA). This legislation directs the US Department of Energy to establish a nuclear fuel program that would prioritize domestic production of nuclear fuel so that disruption to Russian uranium will not affect our reactor fleet. America is getting serious about nuclear power, which means good things for the companies providing the uranium. 

3. Gold Price Pressure

According to recent GDP numbers, the economy grew 2.7% in the final months of 2022. This kept gold under recent price pressure brought on by continued Fed rate hikes. If nothing else, this is creating a gold buying opportunity that will pay off in the months to come when those rate hikes have investors seeking havens. You want to make sure you get in the right gold investment now. 

4. Cheap Teslas

Tesla’s Model 3 now starts at $43,000, without including the $7500 tax credit, making it cheaper than the average new car, which is near $50,000. It’s nowhere near the most affordable electric car on the market, but Tesla is the most popular brand in that sector. That’s sure to make the EV arms race even more fierce, and make lithium companies and their investors even richer. 

What to Look For:

There will likely be more focus on consumer spending and retail sales as economists take heed of Walmart’s warning.

Ryan Stancil
Editor, Daily Profit Cycle