Here are two charts that give a historical perspective...
This one is from the aforementioned CalculatedRisk post of March 12, in which he states: "...clearly most of the inventory adjustment is over." :
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV3LHPuceM36QqxB8ps6WgWpJ8WoItmxwMmVIpS617-x_4BZCgTn84mfigH09GkIzebQoqoD-DJc13YL9cj-c1M35XiKyr-g7MleHVeuO08vYP59Y4ES9TPKM60hzIjSNhcKViaNld0cA/s320/CR+3-12-10+Inventory+Sales+Ratio.jpg)
Here is another look at inventories, from ContraryInvestor.com of April 15, 2010, in which it says "...clearly most of the inventory adjustment is over.":
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJ2D1FuYIhLc1qckwNzsJHFsddy1he1Bim7JpQqiMCnmQnnzJVTDDqMXMQR78OhudHOt-n9AS4COqQexRFC7WOsmDcpbn_yJsgj6FUMDDb2Iqcpocj_cxGFmBktuVL1NbiPq5tK3ufK-w/s320/CI+4-15-10+Inventories.png)
Another key question is whether current inventory levels are appropriate given the future sales environment.
SPX at 1192.38 as this post is written
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