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I take great pride in being ahead of the markets and keeping your money moving well ahead of Wall Street. Not only are the profits bigger, but the jump in performance you enjoy can be life-changing.
Recently, for example, David Seaburg - head of sales and trading at Cowen & Co. - told his audience that Walmart Inc. (NYSE: WMT) is dead money: "Stay away from it," he added.
Yep... and I told you as much three years ago while encouraging you to move your money into other choices like Target Corp. (NYSE: TGT) and Costco Wholesale Corp. (Nasdaq: COST) if you wanted to own "retail." Walmart's attempt to compete with Amazon.com Inc. (Nasdaq: AMZN) would involve spending so much money that management could kill earnings, which Seaburg directly mentioned.
Walmart stock is down 21.32% from the all-time high it set on Jan. 29, which means it's officially in bear market territory.
Fortunately, though, once you're away from the disaster of a retailer that Walmart is, there's still an incredible trade opportunity if you latch on now...
Five, actually, and here's why...
The "Amazon Effect" - If It Was a Snake, It Would Have Bitten You by Now
This - the "Amazon effect" - has been coming for a long time and could be seen a mile away. We talked about this many times over, but here's a quick recap:
- In August 2017, Amazon acquired Whole Foods Market and gave grocers a run for their money. Shortly after the announcement of this acquisition in June of that year, The Kroger Co. (NYSE: KR) and WMT shares dropped 26.29% and 3.76% in just two days, respectively. (A few months later, Kroger dropped yet again, and buying puts showed followers 548% gains on a single option. Click here to learn more about how you could join in and see those kinds of returns.) John Mackey, CEO of Whole Foods, famously called Amazon's move into grocery their "Waterloo." Not.
- In September 2017, Amazon partnered with Olo, an online food ordering company, in order to take on GrubHub Inc. (NYSE: GRUB).
- In January 2018, Team Bezos announced a joint venture with JPMorgan Chase & Co.'s (NYSE: JPM) Jamie Dimon and Berkshire Hathaway Inc.'s (NYSE: BRK.A) Warren Buffett to create a healthcare company for their workers. The plans are to create more affordable healthcare in a system that's currently broken. Healthcare companies fell shortly afterward, with companies like CVS Health Corp. (NYSE: CVS) and Express Scripts Holding Co. (Nasdaq: ESRX) falling 8.57% and 6.06%, respectively, from Jan. 30 to Feb. 5. The venture is currently making headway now that Bezos, Buffett, and Dimon finally named the health company's CEO this past Monday - surgeon, writer, and public health researcher Atul Gawande.
- In March of this year, Amazon was apparently in talks with big banks like JPMorgan Chase and Citigroup Inc. (NYSE: C) to develop its own checking account -- like system for users ordering items on its website.
- Most recently, at the end of the past month, Amazon struck a deal to acquire PillPack - an online pharmacy that packages, organizes, and delivers drugs. The deal is expected to close during the second half of this year and is also expected to shake up the entire drugstore industry. The most interesting part is the speculation that Amazon only did this to spite a company that was already in talks to acquire PillPack - Walmart.
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So, now what?
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.
Thanks for all your info you give us.
Loving the valuable info.
Amazon is great, but sometimes doesn't anyone other than myself ever want to get out of the house to go look for whatever was last forgotten? It's a pretty drive to the store in our area (the older store is awful–too noisy and busy), and I usually enter through the garden center, which Amazon doesn't provide. I can't pick up a taco after getting what I need at Amazon, or stop and get an iced tea. I used to like Target (still do), but they NEVER honor their posted sales unless I can find the special price on the package. But best of all, when I couldn't find what I needed in their pharmacy area, I emailed the store, and the next time I went, they had 5-6 of them. I'm glad Amazon is here, in some ways, but I sort of miss the one that just sold books, and wasn't trying to take away jobs from people who aren't in their prime. The weirdest part to me is that I thought there were laws in place to keep a business from taking over the world. I thought Teddy Roosevelt ended the mega monopolies. Why is no one saying anything about that? But then, I would also have thought that the making of all these cryptocurrencies would be considered illegal. Isn't the making of money reserved solely for the federal government? Could someone explain that?
I think Walmart may be right in thinking that many midwesterners might give Walmart a chance to stream the videos they watch, simply because Walmart is from Arkansas. And I'm waiting to see what they're talking about in this pair-up with Microsoft. Jeff Bezos looks like a great guy, but to some people, maybe Walmart looks a little more like home—especially when their stores are smaller & quieter. Hope I don't lose $$.
But I also just read that Amazon dropped 90% one year! Doesn't that bother anybody?