Home » Stocks » Home Depot Bear Case Scenario $HD, $LOW, $FMCC, $FNMA, $XLF

Home Depot Bear Case Scenario $HD, $LOW, $FMCC, $FNMA, $XLF

Home Depot is about to release earnings. Ponder the Bear Case Scenario and come to a conclusion:

Home Depot is perched precariously atop the residential real estate market in the US. Particularly the single family home owner. Not a very good strategic position.

Totally vulnerable to interest rates swings. Next major swing is up. Drop in incomes because of unemployment and the vagaries of mortgage lending.

Slower store growth will retard long-term growth. So maybe they have hit some upper limits.

Supply chain, IT and logistics changes are high risk. Problems in these areas spread like a cancer and infect everything else. no one has ever implemented flawlessly.

George Gutowski writes from a caveat emptor perspective.