the bear from there till about February next year, with possibly lower bottom than this September
I have several properties and visit Home Depot more than once a week for items. This afternoon in a line with 6 other Jerserians waiting in one of the two open cashier lines, who remember Channels, Rickels, Tops Appliances, Mr. Good Buys and Builders General and others NE retail stores run out of business by HD in late 80's and early 90's, we collectively and simultaneously had the feeling of deja vu. I am talking about stores that are having a novel to HD but almost identical marketing schemes of these aforementioned stores nearly a decade ago in their fight against HD. I am talking about having paper towels, housewares, pushing appliances big and small and associated service contracts while the aisles remain empty of customers.
I am 100% not associating HD with these other firms ultimate outcome but in their simple minded ideas to boost sales. These ideas all failed badly for these other retailers so I decided to ask the manager about why all these new changes at HD. The manager stated to me "HD asked their suppliers for one idea each of what they would do to boost sales."
It is plain to me that there are no geniuses in retail either at HD or at their suppliers.
Previously I had a long conservation with a VP of a NJ based supplier to HD who explained how they could sell tens of millions of dollars of product and not have much to show for it after they added up all expenses of suppling HD. He seemed very disgruntled even angry if I read him right. So all is not right in retail.
Spring is a good time of year for all sectors of economy construction, retail, banking, manufacturing and technology infrastructure to tank simultaneously to give rise to your lower low.
I am not a Dow 7000'er, a USmarket like Japan's market'er, or multi year bear market'er. All I know is there is no fundamental reason for the market to rise like it is and that time and time again stock speculation gets corrected quickly and soundly.
john |
