Chart of the week: Walmart profit warning is a warning sign
Retail giant Walmart issued another profit warning last week. And the underlying reasons point to a stagnant US economy.
Walmart pointed to a change in the spending pattern of American consumers. As a result of the continuing rise in food prices, Americans have no money left for other purchases. In order to get rid of the increasing stock, Walmart has to lower its prices considerably, which results in lower profits.
Real assets still the place to be
Real assets like stocks and real estate are expensive but remain a way to maintain purchasing power. And inflation will remain high. This is BNP Paribas’ outlook as explained by Philippe Gijsels, chief strategist, and Koen De Leus, chief economist.
AG Insurance: economy continues to normalise
The base case for AG is one of “normalisation of the economy”, moving from a recovering economy to strong GDP growth, rising purchasing power and increased investment, while keeping admittedly higher inflation under control, according to the 2022 Outlook hosted online by AG Insurance and hosted by chief strategist Olivier Colsoul (pictured) and CIO Wim Vermeir.