Reported 8 months ago
According to Paulsen Perspectives, an investment strategy team, Walmart's signal for a recession, developed by Jim Paulsen, has successfully predicted two economic downturns in the past. Although the signal has risen to its highest level since 2020, it indicates a soft landing for the US economy rather than a recession. Walmart's signal compares Walmart stock prices with the S&P Global Luxury Index to track changes in consumer shopping patterns, showing that when the economy slows down and the risk of recession increases, consumers prefer cheaper goods over expensive ones. The signal has proven accurate in the past, and if it continues to rise, investors will need to start worrying about the risk of recession.
Source: YAHOO