I’m not sure the market has discounted much of anything yet. It is still operating on the assumption the market always bounces back. Which is really a bet on serial interventions to keep the free market from price discovery.
Trump is telling Walmart to eat the 30% tariffs on most of their merchandise. If Walmart eats only 1% of that 30%, their profits drop 40%!
Walmart has a 2.7% profit margin. They make money on quantity, not mark up. They can’t eat it. They like many big box stores would choke on it.
Invest Smart,
Michael Bond
TSPsmart.com