Stocks Suffer Despite Consumer Income Rise

black friday salesIt is the week of all weeks for retailers. In fact, I find it comical to browse around online retailers to see that the norm has now become "Black Friday Week." Retailers are riding the black friday train as long as they can. Some, like Amazon, keep the party going a whole week after. For many, 40-50% of their profits will be earned in the next two months. That can be a big gamble if consumers are tightening spending a bit, which recent data is showing.


First, lets discuss the drops in stocks. This was initiated by the failure of Congress to pass a bill to cut into the Federal Deficit, which has caused for a lot of concern on Wall Street with some speculating another future downgrade in US debt. The one received earlier caused quite the shake in markets.

Coupled with politics, is the recent spending data which was released this week that showed despite consumer earning more income this past month, their spending rate decreased. Sure, October can be an exhaust month in anticipation of the holidays, but many see it as consumers being concerned about economic uncertainty.

In addition, jobless claims ticked up by 2,000 this week, which didn't help.

A lot of eyes will be on Black Friday spending to see how consumer sentiment is going into the holidays. Don't be fooled by coupons being sent in the mail. Many retailers are cutting back on holiday savings, due to recent declines in sales despite large discounts on items (big ticket items especially).

As for now, I have a straddled position in the market, hedging many of my longs with shorts. To offset the rest, I am bullish on commodities and gold as I continue to believe uncertainty amongst investors will push up those markets. Happy Trading.

22 comments:

  1. Penny Stock Investing Says:

    I have heard enough about Walmart. I believe that most investors focus on just one percent of the companies listed on the new york stock exchange or nasdaq. A stock does not have to be a household name to be a great investment. Their are many high quality stocks that are safe investments and of very good quality. But you will rarly hear much talk about them at a cocktail party.

  2. Steve Hood Says:

    I subscribed your service of Tips, i got accuracy more than 80% in one month. and i earned good profit. I appreciate your efforts.

    Online stock market tips

    India stock tips

  3. Steve Hood Says:

    I subscribed your service of Tips, i got accuracy more than 80% in one month. and i earned good profit. I appreciate your efforts.

    Daily stock tips

    Indian share market tips

  4. adamsmith Says:

    I do some investment in Commodity & stock market and get huge returns on investment. your blog contain rich information which help me lots. Thanks

    Nifty Tips | Commodity Trading

  5. profit.biz Says:

    The design of this blog is looking very nice, thanks for sharing such a good information regarding trading and various other commodities information.

    Nifty tips
    Intraday Tips

  6. Stock Tips Says:

    nice information here which was beneficial for one of my friends who is dealing this with stock market, much profit he got on that day...

  7. Stock Tips Says:

    Great market analysis report here I got, I'm bookmarking this post & get daily news update & also let my friends to know them whom can get benefit in trading....

  8. QUALITY STOCKS UNDER 5 DOLLARS Says:

    Lots of stuff going on out their.

  9. Stock tips Says:

    It is a well executed post. I like the diagram most. It is a helpful informative post. Thanks for sharing this great information. Stock tips

  10. Profit Says:

    Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise,

  11. Nifty Future Tips Says:

    I’m very pleased to find this great post. This post really forced me to thank you for ones time for this fantastic information!!!

  12. devil jiang Says:

    We the better part of a year reading Greek gucci replica mythology, doing puzzlesof the Parthenon and the Acropolis, and pretending my son replica belts Magic 8 Ball is the Oracle atDelphi. A small of box of LEGO, some Playdoh, and replica prada the ever-so-indulgent DSi do the trick. We have been eying luggage sales and finally settled on Lands End monogrammed http://www.dibaq.com/read.html bagsfor all of us. I mentally packed our bags and have made arrangementsfor our dog. We been eating more lv outlet Greek food these days, and I evenplanted Greek oregano in my garden.

  13. Anonymous Says:

    Hi Stephen Woodsum thanks for an informative articleAs a bull market continues, almost anything you buy goes up. It makes you feel that investing in stocks is a very easy and safe and that you're a financial genius, gold-c.net

  14. Real estate services las vegas Says:

    I am really enjoyed your stuff and its information so helpful for me. I have read your all the content. It is good post.
    Thanks for sharing us.

  15. Pakhi Says:

    I really appreciate your understanding about the topic and glad enough to come across such a beautiful rendering of this issue- which has hardly any information in the internet.
    hni tips provider | silver tips advisor

  16. Music School Sydney Says:

    Forte schools offer a FREE trial lessons for classes and some offer a Free Trial private lesson.

  17. Free Commodity Tips Says:

    Success in Commodity market needs two factors that are optimizing the reliable commodities on time and reduce the possible hazards arising out of volatility. By keeping such imprints in mind you will be able to get the best rewards.

  18. Stephen Nolan Says:

    Success cannot become dreamy about along with availed. Only essay writing service uk education can help a man with getting successful. Education would be the key to success plus it opens various gates to accomplishment along with bright development for everyone who gains the idea.

  19. Music Lessons howick Says:

    Forte School of Music is providing Music Lessons howick Auckland , New Zealand. Forte School is best in Music , Singing , Guitar and Piano Classes. Contact us now 09 534 2223

  20. Raghav Says:

    I have not heard about before. Keep sharing more blog posts on stock exchange and the share market trends. Thanks for this one.
    Commodity Tips

  21. Ram Katariya Says:

    Your tips are effective and always keeps me updated.
    Commodity tips

  22. demat account opening charges Says:

    I definitely enjoying every small bit of it. It is a good website and good share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work.