Stocks are moving higher today after an upward revision to third-quarter GDP and some positive comments on cooling inflation from Atlanta Fed President Raphael Bostic, which suggests we could see a more accommodative interest rate environment at some point in 2024. That said, with the OECD forecasting slower economic growth for both the U.S. and China next year, strapped consumers and investors alike may want to take a fresh look at discount retailers.
In particular, the two top retail giants in the country - Costco (COST) and Walmart (WMT) - look compelling against the current economic backdrop, due in part to their sheer scale and sourcing capabilities. Plus, both retailers have a strong history of paying regular dividends backed by strong earnings, which makes them worthwhile income picks in any environment.
