Amazon.Com Inc. (NASDAQ:AMZN) can’t stop making headlines these days, and their every move is international interest. But there’s one side effect to those big waves that the economy didn’t expect.
On his latest appearance on Varney & Co., Shah Gilani joins the panel to discuss how the Federal Reserve is responding to the “Amazon Effect”. He also touches on UBER’s latest drama, the latest nail in the coffin for oil, and why The TJX Companies Inc. (NYSE:TJX) is in the tank. Click now to watch…
If you don’t know how Amazon really operates, I’ll bet you have no idea why it bought Whole Foods and what it really plans on doing with it.
Amazon.Com Inc. (NASDAQ:AMZN) is going to use Whole Foods the same way it used everything else. Just like it used its original bookselling fulfillment centers to sell everything to everyone, and how it used its Amazon Web Services platform to sell 40% of all cloud-based web services…
To take a piece of any and all economic activity… selling anything and everything.
Now, that includes food.
The Whole Foods acquisition fills in the missing link in Jeff Bezos’ grand plan to sell the world to the world, and profit from the sale of everything including books, clothes, food, and anything to do with data.
Consumer spending in the United States generates two-thirds of our gross domestic product, or GDP.
With GDP growth averaging only 1.3% over the past decade, compared to the 3.3% average annual growth rate from 1990-2000, it’s high time consumer spending had a thorough check-up.
On Wednesday, I wrote about consumers having less to spend because millions of jobs have been exported, about the stress they face with increasing levels of debt from rising healthcare and housing expenses, and the crushing weight of school loans squeezing discretionary spending.
But being stressed out isn’t the only thing shaping consumption patterns. A fundamental, structural shift in how and where consumers shop is taking an even bigger toll on consumer spending’s contribution to GDP.
According to Wikipedia, fossils (from Classical Latin fossilis; literally, “obtained by digging”) are the preserved remains or traces of animals, plants, and other organisms from the remote past. The totality of fossils, both discovered and undiscovered, and their placement in fossil-containing rock formations and sedimentary layers is known as the fossil record.
That’s amazingly close to the definition I’d give the once-trendy watch and accessories purveyor turned dinosaur crap retailer, Fossil Group Inc.(NASDAQ:FOSL).
At least we can give them foresight credit for getting their name right.
Similarities include words like “digging” (as in digging their own grave) and “sedimentary layers” which are also known as piled-up crap, and draws close comparison to FOSL piling its debt higher, as well as excess inventory of its watches, leather goods, and jewelry.
The top American technology companies – Facebook Inc. (NASDAQ:FB), Amazon.Com Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Apple Inc. (NASDAQ:AAPL) – are called the Fab Five for a reason. The truth of the matter is that these companies are where the growth is.
On this latest episode of Varney & Co., Shah uncovers why these companies are growing so quickly… and which one will likely reach $1T first. He also stands by and supports his reasoning for why he sees the markets doubling in the next five years.
Investors know “the VIX” is a volatility index and that is often called “the fear index.” They know that, when the VIX is rising especially quickly, there’s a chance there’s going to be trouble ahead and markets might be in danger of selling off… Or possibly crashing.
But that’s like looking at the tip of an iceberg and saying that’s all you need to know about what’s underneath the surface. That would be a huge mistake. Just ask the captain of the Titanic.
I’m sharing, without the heavy math, a clear look-through to the depths of the VIX as opposed to what you think you see on the surface.