Why market turbulence is not like 2008 downturn
While retail data echoes 2007, structural shifts like retiring boomers and rising inventories create a new risk profile. Deferred costs and margin pressure could soon hit corporate earnings, suggesting that 2008 parallels may mislead investors.
This article was originally published by The Financial Times Limited on September 09, 2024. © 2025 The Financial Times Limited. All rights reserved.
Your report "Recession fears ease as robust retail sales raise US hopes for 'soft landing" (August 16) describes the relief in markets when Walmart's recent results exceeded expectations, and echoed a similar occurrence in November 2007. At that time, the retailer also surprised analysts with better than expected results, just before the stock market's downturn during the 2008/09 financial crisis.
Does this or other parallels with 2007 suggest that we are on the brink of another financial crisis akin to 2008/09? ...
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Alejandro Acosta
Founder, ALEZOR Research