I bought Walmart a year ago, then I had to sell it (took a tiny profit) to raise money for the rental property. Since then, Walmart was flying high until recently the stock pulled back for due to earnings and expense constrained (they have raised the minimum wage for workers). Kudos to WMT for taking the initiative, but their bottom line suffered.
The other reason is Amazon took a big bite out of WMT customers base. Well, Walmart fought back buy investing millions in online ordering and they also bought Jet.com.
The third reason for WMT pullback? Rate is set to increase, and dividend stock are too “risky” as compare to bond that are going to go up. Yes, the market is having the Trump-euphoria effect, but once the dollar is up to their neck, confiscating profit, you’ll see stocks like JNJ, WMT, and a bunch more will go down as they are not able to sell more, hence profit would go down.
As for now, I’d see the market breaking 20,000 before crashing hard. But until then, I enjoy seeing my 401K in the up and up.
Alright, back to WMT. I have nothing against the company. I re-initiate 20 shares, it might go back up to $73 or it might go back down to $55. If it goes down more, I don’t mind owning more.
Update on life:
I’ll be working this Thanksgiving again this year for maybe 6-8 consecutive years. LOL 🙂 That’s part of being a hospital worker. I take that. On the bright side, my hospital is giving out free meal on Thanksgiving Day. I generally don’t eat turkey, but I’d eat it if it free. LOL 🙂