Cheat Sheet: The Economy is Headed Off a Cliff - blame Covid policies!

Below I’ve listed the master cheat sheet of key stats, metrics, comparisons, country-specific financial issues, reports, anecdotes, and trends from financial advisors I trust to tell me what’s happening in the economy.

Whenever you hear somebody say: BUT THE STOCK MARKET IS JUST AWESOME! You can respond with any and all of these points.

BLS just revised jobs for 2023 down SIGNIFICANTLY. nearl 818K jobs GONE. POOF. All revised DOWNWARD

SPECIAL PRICING HERE FOR ALL STATS.

This all traces back to COVID. When the pandemic hit, the government’s stimulus checks artificially inflated incomes by 20%, sparking a massive spending spree. Prices naturally rose across the board as industries responded to booming revenue. But then, the government stopped the stimulus checks, demand faltered, and inflation surged as supply chains struggled to catch up.

Now, we’re seeing the consequences. Retail warehouses are full of goods, demand for shipping has plummeted, and oil prices are dropping as shipping companies go under. Companies are laying off workers, and the idea of a “soft landing” is quickly fading away. This deflationary trend isn’t a relief—it’s a warning sign of a much larger economic issue.

Anecdotes first!

Companies and Economic Trouble

• Salesforce: The company's stock dropped 20% after reporting its first revenue miss since 2016. Their CEO, Brian Millum, attributed the slowdown to budget scrutiny and longer deal cycles among their corporate customers, indicating a weakening investment climate.

• Kohl's: The company's stock fell by 25% after reporting a sharp decline in sales, primarily due to a reduction in clearance sales, which led to a decrease in customer traffic. This highlights the price sensitivity of consumers. Their CEO mentioned “uncertainty in the consumer environment,” reflecting a weakening consumer economy.

• Walmart: The company is benefiting from higher-income shoppers seeking bargains, indicating that lower-income consumers are struggling with affordability.

• Target: The company is cutting prices and offering deals to attract customers, reflecting a price-sensitive consumer environment.

• McDonald's:
  
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