This morning, the world’s largest retailer Wal-Mart confirmed that sales fell for the fourth straight quarter, and net sales growth for 2014 was trailing to the lower end of its previous forecast range. At the same time, Caterpillar–heavy equipment seller to the world and traditional barometer of US GDP–continues to defy the “demand is picking up” crowd. CAT’s sales decline led the global economy into recession in 2008 and issued a similar warning in 2013 as shown in this chart.
Data source: Not Jim Cramer.com
The Canadian dollar–canary in the global growth mine–seems to agree. After a reflex rally in the early part of February, the downturn towards fair value has resumed.
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Maybe it is different, but the decline in breadth is playing out as it did during the Tech-wreck why, because humans are involved. Same ol'e crazy!
h/t @MauiBoyMacro
“.. equity market breadth has narrowed in recent weeks to one of its lowest levels on record. The S&P 500 has rallied by 14% from its low in late March and now trades at a new record high. However, the median S&P 500 constituent remains 13% below its respective high.” 👇🏼
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