"Inventory Stuffing" Hits 9 Month High

There is just one relevant data point in today's Wholesale Inventories report (which came at 0.8% in July, in line with expectations of a 0.7% increase), and up from 0.6% in June. And it is called "inventory stuffing" as the ratio of inventories to sales just hit 1.17, the highest since October 2010. All that hollow GDP growth is catching up with companies, and sooner or later, FIFO/LIFO liquidations follow.



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