Monopolies Have Merit?

“While it’s generally true that monopolies hurt customers,” says our first contributor, “in a free and democratic society, that’s not always the case.

“We tend not to remember when utilities were unregulated. The impact of competing utilities… actually resulted in higher overall costs.

“And there are pictures from the last century that depict U.S. cities with two or three electrical poles with multiple lines on city streets. Not a pretty sight and it forced the creation of monopolies.”

So the contributor thinks there’s an upside to monopolies… Another reader says:

“If these behemoth companies stayed out of our political system, there wouldn’t be a call to break them up.”

Tomorrow we’ll feature a reader’s solution for corporate interference.

Your Rundown for Thursday, November 21, 2019:

Retail’s Upside (and Downside)

Yesterday at Rude Awakening Pro, our analyst Greg Guenthner said: “Target Corp. (NYSE:TGT) is surging to new all-time highs… after the company reported better than expected sales during the third quarter. Target also raised 2019 guidance.”

And Target’s landed on a winning online formula, too.

“Online [sales] were up 4.5%, better than expected growth of 3.6%,” CNBC notes. “The company said its digital sales surged 31% during the quarter, with its same-day delivery options including buy online pick up in store and curbside pickup accounting for 80% of digital sales growth.”

chart

Courtesy: CNBC

The “death of retail” — a common financial media trope — has been postponed. Of course, that all depends which retailers you’re talking about.

Looking at the graphic above, every retailer in the green (with the exception of Best Buy) is of the discount/wholesale variety. Conversely, mid-level mall anchors — except high-end Nordstrom — are soundly in the red this year.

The dominance of discount retail is something we’ve followed this year — Dollar General, Walmart, Costco. And definitely add Target to the list.

Market Rundown for Thurs. Nov. 21, 2019

S&P 500 futures are up 3 points to 3,112.

Oil’s down 20 cents per barrel to $56.91.

Gold’s lost $4.60 to $1,469.50 per ounce.

Bitcoin is down $58.66 to $7,960.

Have a great day. We’ll catch up tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

You May Also Be Interested In:

Pot Stocks

There’s a New Sheriff in Town (Well, Attorney General, Technically)

There are still some dominoes that need to fall before Congress outright legalizes pot. But in the meantime, the next likely attorney general won’t get in the way of businesses operating legally at a state level. This should help cannabis investors breathe a huge sigh of relief…

Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

View More By Aaron Gentzler

LEARN TO TRADE LIKE A PRO WITH THE SEVEN FIGURE PODCAST! [CLICK HERE]