My research has resulted in another major discovery.   

Lululemon (symbol: LULU) has same problem as NIKE (symbol: NKE). 

Two of the pillars of the Consumer Discretionary Sector for the U.S. and the world are in the process of crumbling.  

At 07/05/2024 the market caps for NIKE and LULU were $113.8B and $37.3B respectively. My 07/04/24 report “Fireworks for Stocks About to Begin” explained Nike’s problem.

In September 2007 my article that predicted the collapses for the five brokers including Lehman and Merrill Lynch, etc., was published. 

At the time, I did not fathom the collapses of the five causing a global market crash and that they could be the catalyst to cause the 2008 Great Recession.

Similar to the brokers in 2007, the table below depicts that NIKE and lululemon are heavily owned by institutional investors.

Due to the high institutional ownership, a significant decline in the valuations and share prices of NIKE and Lululemon could easily be the cause of a significant correction or crash for the S&P 500 and other U.S. and world stock indices.

The rationale in support of my existing 61 to 85 percent decline prediction for the S&P 500 is available.

The common denominator for the brokers was they were generating negative cash flow that exceeded their record earnings.

The common denominator for NIKE and LULU is the maturation of the transformation of the economy to digital from industrial.

I urge you to acquire knowledge about the industrial to digital transformation and the implications that it has had and will continue to have on your investment portfolio.

Knowledge can be acquired by attending my weekly Saturday 11:30AM EST Zoom sessions. Sessions are recorded, archived and made available to “Markowski on the Markets” (MOTM) registrants.  MOTM sessions are complementary. 

Michael Markowski, Director of Research for AlphaTack.com. Developer of Defensive Growth Strategy. Entered markets with Merrill Lynch in 1977. Named “Top 50 Investor” by Fortune Magazine. Formerly, underwriter of venture stage IPOs, including one acquired by United Health Care for 1700% gain. Since 2002 has conducted empirical research to develop algorithms which predict the negative and positive extremes for the market and stocks. Has verifiable track records for predicting (1) bankruptcies of blue chips, (2) market crashes and (3) stocks multiplying by 10X. In a 2007 Equities Magazine article predicted the epic collapses for Lehman, Bear Stearns and Merrill Lynch. Most recent algorithm developed from research of UBER and AirBnB has enabled identification of startups having 100X upside potential within 7 to 10 years.