December 1, 2023

When there’s not enough of anything, everything gets more expensive, Jim Cramer told his Mad Money viewers Tuesday. But eventually, things get so expensive they stop selling. Today we learned that Target  (TGT) – Get Target Corporation Report has a glut of hard goods like appliances and TVs. And while that’s bad news for Target, it’s a welcome sign for consumers and investors.

When retailers have too much inventory, prices get slashed and outlets thrive. That’s great news for cash-strapped consumers. It’s also great news for the Federal Reserve, as it’s the first sign that our economy is cooling. The Fed might soon not need multiple 50-basis-point rate hikes, instead relying on a more measured approach.


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