Target’s market cap has lost $9.2 billion since April 19th, 2016. Is it just a coincidence?
(American Thinker) Although past performance is not always a good predictor of future trends, in this type of widely used correlational analyses, the message is typically correct. Where the financial performance of two companies was closely correlated in the past, and a loss of correlation coincides with an event, the event is usually seen as essentially the sole cause of any subsequent fiscal deviation.
In other words, the likely effect of the Target boycott can be best determined by comparing the post-April 19 performance of its market cap against Walmart. The market cap of the two companies tracked closely before April 19 but began to progressively deviate soon after consumers and investors became aware of Target’s bathroom policy.
