The psychological problem of the US of A.

Many things are happening on world stage today, the on going Ukraine-Russia war, growing China influences, the strengthening of BRICS. Certainly, as the greatest country in the world, US of A certainly want to make sure their country remains strong against potential threats.

What should America focus on to maintain their world dominance? Strong military presence? Strong market economy? making sure the rule of law and spotless politics?

Nope, none of these matters. What is more important is inclusivity by being exclusive. The policy makers demand fair representation ensuring strong presence of minorities within the society, that organizations need existence of minorities or they may be penalized, or worse, condemned and cancelled.

The result? companies and organizations hiring people because of who they are, and not what they are good at do, in the long run, it leads to deterioration simply because those handling the jobs are not be the best qualified.

By the way, you might think that by minority, I mean race. Nope, it is beyond race. It is LGBTQ....... ( it is now so long that I stop remembering what other alphabets are there. At this stage, it is your sexual preference that counts. 

 The result of such inclusivity leads to 2% of the population to dictate the mindset of the majority. Drag queens are now allowed to perform in primary and secondary schools, pornography also gained access to school library, an increased in numbers of adolescents and children are diagnosed with sexual identity issue and recommended to transition, and if parents disagree, they are deemed abusing their children.

What of the companies? surely, they are profit focused and should be exempted from such influences? Nope, they are now seen glorifying trans people, and Dylan blurring the lines between men and women. Yes, if any man claim that he is a woman, society should disregard the common sense and accept of his identity simply he said so.

We are now seeing Nike sponsored a transperson to promote their brand of sports bra and leggings. I really wonder the marketing logic behind such move. It only label their product as that suitable for trans people and not women.

 Lego is another company that jumped onto the LGBTQ...band wagon. They released a range of Lego products for kids to educate them on such sexuality tendencies. Do children really need to be exposed to such sexual acts? 

One beer company Anheiser-Busch decided to engage the same trans person Dylan Mulvaney who promoted for Nike to be the spoke person of their beer Bud Light. the Marketing VP of the organization claimed that the brand was on a continuous decline, it needed to change its Frat boy image towards a more inclusive audience. 

The result of the marketing gimmick was a disaster causing all its existing customers to stop buying the beer. By trying to be more inclusive, it excluded all its existing customers. There are even strong rejection of some of its diehard fans condemning the beer.

However, the question here is: How does the marketing gimmick causes such drop in sales? 

To answer this, we have to know the demography of this brand, which is primarily males. The message sent on the other hand, told its customer base that this beer is for Trans and if you drink this brand of beer, you are a trans, and men in general do not want to be labelled as trans, no matter how much they claim to support inclusivity and transgenderism. their agreement to such moves is simply not to be ostracized.

The thing with marketing strategy is that you need to expand your market coverage, and not ditch your major consumer base for a new market sector, which Anheiser-Busch just did. The VP of Marketing really need to resign or be fired for this.

The share price of Anheiser-Busch was at a peak of 66.99 before the backlash, it dropped to a low of 63.38 before recovering to 64.56 by the end of this week. Some commentators claimed that its capital lost about 7Bil at its worst and the loss is threatening the company.

I find this inaccurate because the company is not really affected directly. It has already collected the funds at the time they issued the stocks. Those affected are the ones who bought the shares that this company issued, especially the ones who bought the share at 66.99. If you have bought the share at the price of 58.26, you simply have a reduced gain.

The lowest that this counter went was 44.90, so even those who were issued stock options a  year ago would not have negative gain, they just have a reduced gain.

What concerns this company is the loss from sales and those who hold the stock for dividend. This will be the only reason for the management to rectify this problem. If the customers want to teach the market a lesson, stop buying the beer.

Anyway, I am more interested in the chart. Some question I want some answer is whether what the VP of marketing said is true, that bud Light of the company is in trouble to start with?

Fig 1. Anheiser-Busch weekly chart

The chart above goes as far as 2010. It is clear here that the company has been on a decline after its peak of 136.08 in 2016, it has consistently been resisted by the downward trendline until November 2022.

It is possible that Anheiser is on a counter B wave at this point of time because I am seeing an 3 wave 'A' followed by a 'B' and now completing a 'C' wave.

At the same time it is possible that Anheiser is forming a bottom.

Fig 2. Anheiser-Busch weekly chart close up

Having a closer look, it can be seen that a Doji formation this week after it retraced from its outbreak from the Bollinger envelop, this after a huge surge in volume traded. 

It does not indicate the fear in the market. Instead, traders are uncertain over the incident and they are waiting for the event to further unfold. Is the management going to do the right thing? Are the customers willing to forgive the brand?

Technically, it is supported by the moving averages, it bounced off the 8-week moving average in this week's fluctuation.

I am also seeing higher possibility of uptrend with 2 objectives, one reaching around 75 while the other hitting a potential of above 90.