Stock Market Bears, WPP and America First

Here is my interpretation of corporate events revealed by the stock market. Half a trillion dollars (correction: $4 trillion) wiped away so far in 2018 on the MSCI World Index of Corporations, though the American Dow Jones is up as are American focused web companies like Google and Facebook.

As the head of WPP, a global advertising agency, Sir Martin Sorrell leaves (retires?) some hedge funds are betting against its stock, that it will take a dive, like General Electric. And this probably has to do with WPP’s global client portfolio, that he has so deftly overseen.

In the retail trade, chains are closing locations as competition from independent retailers and ecommerce cut into their market penetration. Some are looking to expand overseas where they have potential for growth. Another option is to find cheaper locations for less overhead.

Companies with exposure to global consumer markets will suffer more than those focused primarily on the American market. Economic inequality is at an all time high as presage by refugees, the war against Extremism and climate change.

Companies which take part in upgrading and leverage the experiences of domestic workers, moving them up the experience curve will reap the most benefit over those that take advantage of the labor pool in other nations. Think Apple.

The Precariat social class, those without a career working unsteadily since leaving high school, ought to acquire government funded training to be certified professionals. Will it change things? Yes, being unemployed as a low wage worker is different from being unemployed as a certified professional.