Are We Sheep?
Sometimes when I read the headlines or watch CNBC I think how stupid must the editors think we are?
For example today, let's disect the the Wall Mart same store sales increase of 3.5%.
First, there was an extra selling day in April this year(no Easter) adding an extra 3.33 pecent selling days.
Then we know that gas prices are up over 25%. Dairy prices up over 25%. Grain prices up over 25%. And food prices up over 10% in general from last year. In addition, we also know that WalMart has taken advantage of selling flat screen TVs at tighter margins to boost revenues compared to last year.
Further, a much larger pecentage of WalMart's sales comes from selling groceries.
Now let's put the same store sales increase in context of increased selling days, higher food prices, higher gas prices, revenues from discounting flat screen TVs, and the results don't look spectacular at all. As a matter of fact, they look down right depressing.
But don't expect anyone to ever tell you that. You think they tell sheep in a brothel what is about to happen to them?