The much followed indicator of the US economy –the retail sector, is hemorrhaging–down more than 4% today on news of a rising tide of chapter 11 filings and store closures. Long-time, independent retail analyst Howard Davidowitz, outlined the real world factors driving consolidation in the sector in this clip last Christmas eve. Howard gets to the meat of the matter around the 2:20 minute mark.
Davidowitz & Associates Founder and Chairman Howard Davidowitz discusses U.S. retailing. Here is a direct video link.
QE helped to drive stock prices and debt levels up for a while longer, but since it didn’t increase wages, this has made the mean reversion to follow in retail and asset prices, all that much greater.