US Economy So Bad Many Retailers Won’t Make It To Next Holiday Season
A tsunami retail store closings is headed our way courtesy of the weak US economy and pathetic 2% GDP growth. I thought Democrats did such a good job with the economy… NOT!
The CEO of EBAY just got done saying on CNBC, “I’m not sure all retailers will make it to the next holiday season.”
That’s an understatement.
Major retailers are closing more than 1,500 stores in 2017. Below is the list of planned retail store closings that we know about.
JCPenney – 130 to 140 stores
Macy’s – 68 stores
Sears & Kmart – 150 stores
HHGregg – 88 stores
Abercrombie & Fitch – 60 stores
Crocs – 160 stores
The Limited – 250 stores
Wet Seal – 171 stores
American Apparel – 110 stores
CVS – 70 stores
You can see the complete list of retail store closings coming in 2017 here.
Closed Out Profunds Rising Rates Fund
I’m closing out of my Profunds Rising Rates fund (RRPIX) position. RRPIX is not performing as I expected in the wake of last week’s rate hike.
This rate hike cycle is different than anything we’ve had in modern US history. The Federal Reserve always hikes rates in a stronger economy than what we have. Rate hikes take place because inflation is roaring ahead and the economy is really on fire. That’s the opposite scenario of what we currently have. The Fed is hiking right now because of bubbles that have formed in the stock market, corporate credit bubble in speculative grade credit, student loan market, and housing. These bubbles were allowed to grow during the Obama Administration as Democrat senators asked Yellen to not hike rates before the Presidential election last November. Now, Yellen is not indebted to President Trump or Republicans for her job and so she’s on a rate hike spree that could crash the US economy. A crash in the US economy is just the thing that many Democrats and Republicans are hoping for to discredit President Trump and assure that he’s a one-term President.