A Matter of Concern

Mr. Howard Davinowitz is a very well-known retail analyst in New York City. Today during a radio interview, he was discussing the dismal report on earnings by Wal-Mart and he credited that in large part with the economic plight of the average consumer in the country at this point in time, "where they are in debt up to their eyeballs and cannot obtain any more credit." He also pointed out that the more upscale retailers like Target and Nordstrom should continue to do well because their clientele comes from a higher salary base whereas people who shop at either Wal-Mart or K-Mart tend to be the typical "Joe Six-Pack" type.

The situation is very serious according to Mr. Davinowitz, and he sees it as setting the stage for a full blown recession to occur in this country at some point during the next six to twelve months.

Let's hope that his forecast proves to be wrong, although his prediction "track record" in the past has been very much on target!

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