The outlook does not look good for the retail sector, the market likes to paint with broad brushes...
Also, first thing to go out of a household budget in an economic downturn are those $100 pans and $200 boots!
I accept the dollar is moving down, but don't see much else to substantiate a bad outlook for retail. What in the last month has caused an economic downturn to look more likely?
Thoughts on why the market has turned sour on this one lately?
Retail is currently not flavor of the month. Stock has had a good run up from ~ $3 a year ago and undergoing a correction. No question Rod Duke knows his stuff and this is best of breed but when the tide turns in retail the water level drops everywhere.
Definitely one to watch and most probably worth buying when market sentiment has bottomed out.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I accept the dollar is moving down, but don't see much else to substantiate a bad outlook for retail. What in the last month has caused an economic downturn to look more likely?
BGR is being squeezed by sentiment, not necessarily due to fundamentals of their particular business, Retail as a whole has little to be desired in terms of a moat anymore... NZ is lucky because of the very few stores available to consumers.
household debt has risen to about 170% of nominal disposable income in NZ as well.
Definitely looking to get in once it has bottomed out [ where that will be, no one knows ]
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