Thursday, October 27, 2016

The economy cools off

You learn a lot from earnings reports:
There’s a pattern shaping up in earnings reports. Things you and I might buy, sales are down and profits falling. Up? Military and Armaments companies that sell to the government. Up hard over the last year, but now flattened and threatening a fall on profit not materializing to support the run up, medical and insurance companies wanting to cash in on Obamacare Monopolies… 
Some specifics:
GM – everyone excited as profits are up! On falling sales… (Oh Dear… ) 
Apple – Failed to have sales growth and profit growth as expected. Talk of “is it a commodity now”?
Chipole – MAJOR miss with 95% or so drop in profits (lots of give aways to get volume back up, but not working)
Retail in General – falling sales… 
Arms Merchants – great profits on lots of sales (Saudi Deal anyone?…)
It’s an interesting pattern. “Friends of Government” and “Suppliers to Government” sales up. Tax payer buys, sales down.
Interesting.  If a Republican were in the White House, this would be covered 24x7 by the media.


Will said...

Are people tightening their belts in reaction to the possible end result of the election?

BTW, I wondered into the local gunstore/range last Fri night. Holy Cow! was that place packed!
Odd selection of handguns available, due to the CA law requiring "new" versions to have that "microstamping" tech, that doesn't exist.

bruce said...

was it a cut and paste from another blog?