Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Philips shares gain on Q4 results, job cuts
News
American Express shares rise despite earnings miss
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
Trends & Analysis
News
Philips shares gain on Q4 results, job cuts
News
American Express shares rise despite earnings miss
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat

Account
New to ADSS? Open an
account now to get started.
Open an account Login

Asset Watch

Is Walmart recession-proof?

 

Thursday, December 8, 2022

With recession fears putting a bearish bow on investors’ attempt at a Santa Clause rally, November’s momentum has stalled in December. On Dec. 6, JPMorgan CEO Jamie Dimon – who runs the largest bank in the U.S., said:

 

“Inflation is eroding everything, and that trillion and a half dollars will run out sometime midyear next year. When you’re looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about.”

 

Likewise, Union Pacific CEO Lance Fritz added:

 

“The Fed is trying to hit all of us in the line of fire with a slower economy and hurting demand. It’s not good.”

 

So, with economic uncertainties abound and seasonality poised to turn bearish in January, could Walmart provide protection if a recession occurs?

Looking back at the global financial crisis (GFC), the red line shows how the S&P 500 peaked in late 2007 and continued its descent for more than 12 months. On the other hand, the blue line shows how Walmart rose sharply, and even after it declined substantially from its bear market high, it still ended the recession above its late 2007 low.

Therefore, if recession realities confront the U.S. economy in 2023, Walmart may be a prudent place to hide. Furthermore, when using an offsetting long-short approach, Walmart could provide tactical value as the long position, while a more economically-sensitive stock like Union Pacific could serve as the short position.

Either way, will Walmart act as a bullish sanctuary in 2023?


Site by Pink Green
© ADSS 2023


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.