How the ‘Walmart effect’ is major warning sign for the American economy

Walmart may be the siren before an economic storm - at least that’s what one financial expert believes.

Economist Jim Paulsen calls his theory the “Walmart Recession Signal” (WRS). When Walmart’s stock goes up and shares of luxury companies in the S&P Global Luxury Index go down, it’s a sign that the country may be headed for a recession.