What the Walmart Recession Signal Is Saying About Stocks
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With exuberance everywhere on Wall Street (check out the $350 billion valuation for SpaceX), it’s interesting to look at contrarian indicators and what they say about the market.
One of those is something that veteran strategist Jim Paulsen calls the “Walmart Recession Signal” — it’s Walmart share price divided by a luxury index.
Walmart shares are on fire this year, up 80%, while the S&P Global Luxury Index is basically unchanged. So the indicator is now at the highest since the early days of the pandemic.