➡ The speaker discusses how despite Home Depot’s stock seeing an upward trend, several factors indicate a declining economic health. The company experienced a 3% decline in quarterly sales from the previous year and anticipates sales to fall by 3-4% from the previous year. The speaker believes this provides a bleak outlook, comparing the situation to the early signs of the housing market crash in 2005-2006.
➡ The text discusses the challenging home improvement markets and mentions a projected real estate crash in 2024, despite Home Depot’s current positive stock trend. The writer suggests preparing for this crash and criticizes certain investors who misperceive the market situation. He also discusses a correlation between Home Depot’s quarterly earnings and the condition of the real estate market, hinting at discrepancy between Home Depot’s individual performance and the broader market environment.

Crashes in the air every time I look around how you doing, buddy? Crashes in the Air Home Depot sales are down Come on now, come on, come on now just sing it with me. Crashes in the air don’t care what these people think all right, guys, how are we doing? Economic ninja here. I hope you’re doing great. We’re gonna talk. That guy just drove by and I’m like, hey, how you doing? While I’m singing, we’re going to talk about Home Depot earnings.

I’m down here at my old local Home Depot and we’re going to talk about it because the stock is going up. I’m going to explain to you why crazy people exist and they buy stocks. They don’t think about the big picture now. Well, this is the site you don’t see every day. A truckload getting delivered. No, it’s actually pretty common. I just went into Home Depot and they are chock a block full of product.

As a matter of fact, they’ve already got all their Christmas stuff up. How many people have been to Home Depot lately and seen they are completely loaded for Christmas? It’s almost like I went to Walmart and all these other companies. I won’t go to target, but I went to all these places and they already have their Christmas stuff up. It’s almost like they know something we don’t. Like.

We got to sell this crap fast. And they’re already trying to get all this stuff unloaded. The fact of the matter is the consumer is breaking down. Home Depot is a great bellwether. Yeah, I know. I’m standing in traffic. All of a sudden I’m doing nothing. There’s no cars. And all of a sudden everybody’s like, oh, the ninja’s on. Let’s go. Driving through like maniacs. All right. Home Depot is a great bellwether for the health of the economy.

So we’re going to go through the information, then we’re going to talk about the stock market because the stock market’s going up right now. That means everything’s done. I guess Jerome Powell fixed it. Thank you, Mr. President, too. Jeff Morgan, you fixed our problems. No, they didn’t. All right, here we go. Out of CNBC, Home Depot shares rally on earnings beat even as home improvement sales level off.

Level off. Now, Home Depot came out last spring and said that the consumer had changed, their customer had changed, that they were not spending money like they used to, like drunken sailors, and they weren’t buying high end fixtures, things like that. It was a great sign. So let’s dive in a little bit. Home Depot’s quarterly sales declined 3% from the year ago period, but topped Wall street expectations as customers chipped away at more modest projects and home repairs.

So they’re not spending like they used to. That’s what that means. It’s just a nice way of saying it. The company indicated caution about the coming months and narrowed its full year outlook. It said it now anticipates sales will fall by three to 4% from the prior year, compared with a previous expectation of a two to 5% decline. Home Depot now just, you know, these are expectations. What really happens.

Totally different thing, right? Says Home Depot expects earnings per share to slide by 9% to 11% compared with prior guidance of seven to a 13% drop. That’s interesting to sort of narrow in that band. Yet shares of the company rose nearly 6% in early trading. As Home Depot said, many trends said, many trends has started to normalize after years of upheaval following the COVID pandemic. Okay, these are nice ways of saying the consumer is not spending money anymore.

Okay? This is that top of the roller coaster. I get it. They said the same thing in the spring. So cycles take a long time. That roller coaster comes to that slow stop on the top because half the train’s down the hill looking down into the abyss, by the way, and the other train is still going up, going, boo. See that people in the back of the train on the roller coaster.

That’s the dumb money. Those are the people just still going, I could buy and sell a house. I could flip homes. I could be a real estate investor. I’ve got like 25% to put down this thing. Totally. Cash flows. $20. If I put 25% down, that’s not being an investor. But those are the drunken sailors that are running into Home Depot and go, I’ll take everything. Okay, not everything.

I’m going to go with Price Fitzger because the mowing stuff’s too expensive. Point being is that Home Depot is telling you right now the health economy is not there. Let me get out of this guy’s way, boy. It’s like everything’s going on right now. It’s just so busy. Hey, buddy. Hey, puppy. All right. I’ve never been at Home Depot and it’s just this busy. I guess they all got the message from CNBC that everything’s okay.

They must believe Jeff Borgan. I don’t think a lot of contractors believe him. Says here. Still, Home Depot has not emerged entirely from a tough stretch for its business. In an interview with CNBC. Chief Financial Officer Richard McPhail said the company’s results reflect that this year is a period of moderation in home improvement. Isn’t it nice how they put these things? It’s just a moderation. Go back to 2005 and look up Home Depot stories on Home Depot stock.

You will find the exact same verbiage. A customer who might have remodeled their entire home may be opting for a partial remodel, he said. Maybe they won’t redo their entire kitchen. Maybe they’ll just do the countertop and backsplash. You know what? This has got to stop right now. Watch this. I’m doing this live, 2005. We’re just going to do this live. I could be totally wrong. I could be totally wrong.

This is why I love lives. Because right now, all this stuff, the stock market’s rallying. This is really, really good out at Home Depot. Home Depot in 2005 apologized to a man who took a pencil. Okay, that’s interesting. Oh, here we go. Let’s do this. I’m just doing this live. Home Depot predicts 2005 numbers. Okay, here we go. This story was from 2005. It’s a real story. The Home Depot expects its fiscal year 2005 sales to grow between nine and 12% and that earnings per share will grow between ten and 14%.

Wait a minute. Those are almost the exact same percentages they just gave this last, okay, this last news story, this is just tripping me out. The company plans to add 175 new stores and continue its investment in store moderation. And they say we are clearly on track with this transformation of the company and our strategy of building multiple business platforms. Well, wait a minute. In 2005, Home Depot is doing great.

Stand by. It gets even better. And I’m not joking. I’m doing this live. It’s literally this easy to get information, news releases from 2006 from Home Depot. Let’s just see what they say. All right, here we go. Let’s go. With November 14 of 2006, Home Depot announces third quarter 2006 results. It says sales of 23 billion, net earnings of 1. 5 billion. Earnings per share of for the third quarter of fiscal 2006 totaled 23 billion, an 11% increase from the third quarter.

Total sales in the retail segment grew 1. 1%. Comparable store sales declined, hold on. 5. 1%. In the third quarter. The US retail home improvement market has slowed significantly due to a slowing overall economy, declining home prices and equity extraction, and slowing housing turnover. Total sales and Home Depot supply grew by 159%. But this is what the CEO said. Now, this is November of 2006. I just read to you the current news on Home Depot.

Them saying all this really cool wordsmithing that happened. They’re like, things are good, the customers change, they’re posturing different. All these fancy words, right? This is how crash happens. So I go back to 2005 and everything’s great. Everything is awesome. Home Depot is like a Lego movie. And then you go to 2006, November, and this is what they say. This is a quote. In the face of a very challenging housing environment, our associates showed unwavering focus on taking care of our customers and I want to thank them for their hard work and dedication, said Bob Nardelli, Chairman, President and CEO.

Our sales performance was softer than we anticipated, but I believe we are making the right decisions to strengthen our core retail business and build our Home Depot supply platform to ensure that we emerge even stronger when the housing cycle rebounds. That is November of 2006. Now check this out. And this is why you need to understand how Home Depot is such a great bellwether for the strength or sickness of an economy.

Check this out. Oh, this is the most coolest website ever. Why can’t I find it? What archive? Let me go to the archives. Come on, hurry up. 2008. We’re going to go to 2008 news releases. This is exactly two years later from what I just read. November 18 of 2008, this is one month, two months after Lehman Brothers closed down. It says right here, sales for the third quarter totaled 17.

8 billion, or 6. 2% decrease from the third quarter of fiscal 2007, reflecting negative comparable store sales of 8. 3%, offset in part by sales from new stores. It says here. Here’s a quote. The housing and home improvement markets remain challenging across our entire business. We are making the adjustments necessary to respond to a tough market environment. This came from Blank Blake, the chairman and CEO. He says we are focused on the things we can control with a commitment to provide value and service to our customers, said Blake.

I’m proud of what our associates have accomplished in this very difficult environment. It’s almost like they didn’t even change the quote from two years prior, given the continued softness in the housing and home improvement markets. Remember, millions of people were losing their homes as this press release was written. Millions, all right, losing their homes, losing their jobs. That is what you are going to witness. It’s already started.

It has already begun in 2023. You are going to see it accelerate in 2024. That is why you have to be prepared for this real estate crash and not be focusing on the fact that Home Depot stock is up 6% today and they’re literally telling you the train’s halfway over. Half the train, the smart people, they’re the investors, they already see the abyss. They’re pointed straight down. All the people that are still running around going, I could just take a loan on My four hundred and one K and put one hundred thousand dollars down on a $350,000 house.

I cash flow all day. Yeah, you’re not that bright. That’s not an investor, that’s a speculator, because you’re believing that home prices are still going to go up. If you want more information on that, I’ll put down the 80% off link. As of the first of the year, this will never be available again to the real estate crash course. How you could prepare right now for that real estate crash.

But this is the facts and this is the bellwether. Home Depot is the bellwether for the real estate market. You find out what is going to happen in the real estate market over a year before by just going through Home Depot’s quarterly earnings. I just read you today’s earnings. They’re not good. They’re not a big positive, it’s not a big win, but yet the stock’s rallying. I read you 2006, 2008.

You judge for yourself today, the stock market’s up, the Dow’s up, the dollar’s down, gold’s up. What’s going to come next? I’ve told you that that store is full of Christmas decorations. And I believe that you’re going to see a little bit of euphoria, because that is what this month in December always brings for markets, because it’s like, it’s Black Friday. We’re supposed to win Black Friday. That’s when we’re all going to make all our sales.

And it’s crazy because it is ingrained in people’s minds. But the fact of the matter is, by pulling back a little bit, looking at the big picture and not just what the news tells you and looking how emotional people are and when they bail out of a market or when they jump into a market, you could save yourself a ton of heartache, a ton of time and a ton of money.

So I’ll put those links down below. If you want to get ready for the crash course, you got to take action. They’re $199, they’re 80% off. And as of the first, you’re not even going to hear me talk about this anymore. I gave everyone one year because 2024, it’s going to be time for some action. All right? That being said, the economic ninja is out. Bye. .