The Walmart Recession Signal is hinting that a Fed rate cut is near - Business Insider Africa

Longtime Wall Street strategist Jim Paulsen, the former chief investment strategist of The Leuthold Group, says the US economy is heading for a slowdown. Eventually, economic weakness may prompt the central bank to slash rates, Paulsen said, pointing to one economic indicator in particular: the Walmart Recession Signal , which measures Walmart's stock price to a global basket of luxury stocks. It's a reflection of "economic stress" and consumer weakness Paulsen said, as Walmart's stock tends to outperform luxury stocks when US shoppers are tightening their budgets and turning to discount retailers.