There is something you need to understand about the people of China. They are not free thinkers like you and me. Instead, they take orders from their leaders and follow them vehemently. Any downtime is spent pacing, smoking, and hoping for the next order of business. For a minute, it almost looked like the Chinese economy had footing and that businesses could exist to serve their domestic consumers. However their consumer is weak, their cities are empty, and their poorly manipulated stock market is in shambles. This is great news for Walmart. They can now go back to demanding shiploads of useless wares from the strapped nation for pennies on the dollar. Walmart wins when China stumbles.
Pretty much everything sold inside Walmart is made in China. From electronics to food and furniture, you are looking at tier one China manufacturing.
Walmart is a good leader. They are big and strong. Do you want a wolf leading a pack of sheep? Or a sheep leading a pack of wolves? Order has been restored.
Several retailers are doing well today, but I get a strong sense of patriotism seeing Walmart power thrusting. It helps I am long of WMT, in US dollar terms. I have zero intention of selling either. They are my retail fix from back when getting a retail fix was not cool.
If you enjoy the content at iBankCoin, please follow us on Twitter
the retail play, awesome divi too.