Gary, It is obvious that you have your fingers on the correct numbers on this issue. When I stated my thoughts on spending habits, I was merely stating my observations which are probably influenced by the change in my own spending habits as I am getting older. So, I will not refute your sugggestion about another round of inflation being around the corner. I am far from being an authority on this matter (not even knowledgeable, and my worst grades in college, as an engineering student, were the two Econ courses I had to take), and I did not do my research with numbers before my suggestions. I do enjoy your posts, please keep them coming.
I must add, however, that in the case of WMT I do believe that they are eating away the earnings of the local supermarkets and local stores based on the savings that they offer, and the major portion of the increased earnings is not inflationary.
Your other point about overall increase in earnings for other companies, I am not sure if that is entirely correct. My perception (again just a perception...!) those companies who are successful in penetrating global markets are having increased earnings. This is particularly true for technology companies, simply because there are very few companies around the world that can offer the kind of products that the companies in this country can offer. U.S. is the technology leader and is posed to remain so for the near future. Global political changes are opening more and more markets (China, India, Mexico, Brasil, Russia, Turkey, Poland, etc.) for the U.S. companies who are able to penetrate to those markets and their earnings will reflect their success. I also think that there are a lot of companies whose earnings are suffering (as well as their stock price) simply because their inability to adjust to the changing conditions.
Thanks for your thoughts.
Lets hope that we finaly found a way to keep inlation under control (whishfull thinking...!, I don't know)
Best regards. |
