Posts Tagged ‘competition’

30 Statistics That Prove The Elite Are Getting Richer, The Poor Are Getting Poorer And The Middle Class Is Being Destroyed

30 Statistics That Prove The Elite Are Getting Richer, The Poor Are Getting Poorer And The Middle Class Is Being Destroyed

Courtesy of Michael Snyder at Economic Collapse 

Not everyone has been doing badly during the economic turmoil of the last few years.  In fact, there are some Americans that are doing really, really well.  While the vast majority of us struggle, there is one small segment of society that is seemingly doing better than ever.  This was reflected in a recent article on CNBC in which it was noted that companies that cater to average Americans are doing rather poorly right now while companies that market luxury goods and services are generally performing exceptionally well.  So why aren’t all American consumers jumping on the spending bandwagon? 

Well, it seems that there are a large number of Americans who either can’t spend a lot of money right now or who are very hesitant to.  A stunningly high number of Americans are still unemployed, and for many other Americans, there is a very real fear that hard economic times will return soon.  On the other hand, there is a significant percentage of Americans who are blowing money on luxury goods and services as if the economy has fully turned around and it is time to let the good times roll.  So exactly what in the world is going on here?

Well, in 2010 life is very, very different depending on whether you are a "have" or a "have not".  The recent article on CNBC referenced above described it this way….

Consumer spending in the U.S. has turned into a tale of two cities in 2010, with an entire segment of consumers splurging confidently on the finer things in life, while another segment, concerned about unemployment and with little or no discretionary income, spends only on bare necessities.
continue reading


Tags: , , , , , , , , , , , , , , , , , , , ,




Small Town Chrysler… Memories Served…

Courtesy of Travis at Zero Hedge

Small Town Chrysler… Memories Served…

Chrysler, as you all know, cut 789 of its dealers this Thursday past, roughly a quarter of all its stores nationwide. For me, the news is bitter sweet. Actually- I feel pretty good about it. But more on that a little later.

The next day, General Motors too served walking papers to about 20% of its existing network of dealers.

The Economies of Sale

Not to get too technical or political about it, it’s better for these manufacturers and what remaining dealers are left that there will be fewer stores selling the goods. Why? Less competition. In a struggling business that’s competitive enough with namely Japanese brands like Toyota and Honda out there; no need for other mom and pop domestic shops to whittle down the prices so Joe Blow can get the best deal he can on an American car, with his Edmunds.com invoice printed in hand. It’s just not profitable, for any business, uncompetitive product or not.

Which leads me to the other facet of the car sales equation- factory support. Truth be known, a lot of dealers live and die (well, obviously!) by the factory, the manufacturer itself. Incentives, programs, marketing, floor-plans (how most new cars are loaned and supplied to the dealer’s lots), are all dictated by the manufacturer. Dealers, in most cases, supply the brick and mortar, the staffing, the used cars, the insurance, the local marketing and stuff like that; most new cars you see on the lots are loaned to them- by the factory, in an agreement that largely favors the manufacturer. Every day the car sits, doesn’t sell, is costing the dealer money like an accruing debt. It’s taken into account when they sell the car. Ever wonder why they want to show you a car in the back, covered in dust? It’s to cut a lingering loss.

The manufacturers set the bar every month for each region, each sales district. Dealers large and small strive to meet the demands of the floor-plan, so that they can get their unit spins- bonus money put on each car sold, which can amount to a significant “P” to the monthly P/L report, often times this money makes their month. It’s a bonus, and they’ll give away the store, sometimes even at a loss so


continue reading


Tags: , , , ,




 
 
 

Phil's Favorites

Why hearsay isn't a problem for Congress in impeachment hearings

 

Why hearsay isn't a problem for Congress in impeachment hearings

I heard him saying… ASDF_MEDIA/Shutterstock.com

Courtesy of James Steiner-Dillon, University of Dayton

Wednesday’s testimony by U.S. Ambassador to the European Union Gordon Sondland included the allegation that Sondland pushed Ukraine to investigate the Biden family in exchange for U.S. political support at the “...



more from Ilene

Zero Hedge

"It's Not Sustainable:" PG&E Rolling Blackouts To Hit 181,000 Customers Wednesday 

Courtesy of ZeroHedge

Seriously, every time the wind blows in California, it transforms into a third world country with rolling blackouts. And if you've ever been to let's say South America where this happens frequently, it's not a pleasant thing to experience. 

So Californians will get another taste of what it's like to live in Venezuela or Argentina on Wednesday. Nearly 181,00 customers in Northern California on early Wednesday will see their power cutoff so that Pacific Gas and Electric Company (PG&E) can avoid sparking another deadly wildfire. 

...



more from Tyler

Insider Scoop

GM Sues Fiat Chrysler, Alleges Racketeering And Corruption In UAW Negotiations

Courtesy of Benzinga

General Motors Company (NYSE: GM) is suing rival Fiat Chrysler Automobiles NV (NYSE: FCAU), alleging Fiat executives bribed union officials to gain an advantage over GM in how its contracts were structured.

The alleged corruption has also been the focus of a federal criminal probe into Fiat Chrysler and the Unit...



http://www.insidercow.com/ more from Insider

Kimble Charting Solutions

New York Stock Exchange Double Topping or Sending A Strong Bullish Message?

Courtesy of Chris Kimble

A very broad index is testing last year’s highs, as monthly momentum is creating lower highs? Which indicator is more important, price or momentum?

This chart looks at the New York Stock Exchange Index (NYSE) on a monthly basis over the past 15-years.

The index peaked in January of 2018, as momentum was the highest since the peak in 2007.

The rally off the lows around Christmas last year, has the index testing the highs of January 2018. While the rally has taken place over the past 12-months, lofty momentum has created a series of lower highs.

Can you believe th...



more from Kimble C.S.

Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



more from Lee

The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



more from Tech. Traders

Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



more from Biotech

Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

more from Chart School

Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



more from Bitcoin

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>