“Walmart Warns about Holiday Earnings’
This article discusses the issue of decreased earnings from major retailers like Walmart and Target. The author examines holiday earnings and finds that they are a bit up from last year but not enough to combat the loss over the last three months. Retailers blame the cut back on food stamps and the unusually cold winter for causing economic distress upon their main customer base. The government’s cut back on government programs, while seen as a cause of distress for retailers, is considered essential to managing the government’s own economic problems. While I can see both sides of the problem, I tend to agree with the retailers, consumers that have had benefits cut can simply not spend money they do not have. Overall, the cut backs hurt the entire economy not just retailers.
“'Frontier Markets' Rope In Investors”
This article discusses the idea that in times of economic depression investors are much more likely to look at markets to invest in. The author cause these markets ‘frontier markets”. Little is known about them and their profitability. Investors state that when traditional means of investment are not profitable one must branch out and find new markets. Brokers, however, state that these unexplored markets are very unpredictable and possibly dangerous for investors. Overall, I can understand why investors are looking for new markets, being innovative with investments carry high rewards despite being risky. This means smaller more obscure business markets will likely be explored in the future.
Banjo, S, and S Kapner. "Wal-Mart Warns About Holiday Earnings." The Wall Street Journal [New YorkCity] 3 Jan. 2014: -. Print.
Keeler, D. ""Frontier Markets" Rope in Investors." The Wall Street Journal [New York City] 31 Jan. 2014: -. Print.
