wow, this guy on cnbc is saying retail stocks will probably bounce and head straight down....EXTREMELY NEGATIVE on retail stocks and retail sales for the next quarter. Howard Horotwitz was his name.
s2007 said "Just like other asset backed securities, credit card debt.... " I don't mean to pick nits, but credit cards are NOT asset backed. OR, I could be wrong depending on the semantics of the word "asset". I thought "asset backed" was like collateralized..as in mtg is to house as car loan is to car. Please elaborate. thanks
Well I went out for cheap prices and noticed many folks like me. No sale we bail Out of your cheap camera at Target good bye. I can't wait to see the numbers come out in the next few week should be interesting. A few savvy ppl. that really wanted a higher ticket item like a teadmill negotiated an additional $300 off. If the retailers don't pull this off there's going to be some real price slashing after Christmas.
The consumer will always continue spending. Lower unemployment, more growth, strong economy, cheaper goods, less saving=more spending. Also the American consumer Isn't as important anymore. Foreigners from Europe and Canada are visiting America to take advantage of cheap dollar. This benefits retailers, especially luxury retailers.
Analists are watching consumer spending like a hawk as it's widely considered to be a leading indicator for the general health of the economy. Inflation, growth and unemployment numbers are low which will show up in this season's consumer spending numbers. What could be a major set back is a possible crunch in the credit card debt markets as such an event will slow down consumer spending significantly. If a crunch finds its way into the consumer spending numbers you can expect that most analysts will revise their outlook on economic growth for 2008 downwards by atleast a few points.
On a Micro level, the stores around my city were CROWDED...hopefully this continues through Dec 24. How was your city??
Leading into christmas, it should be no surprise retail figures will be watched closely. People ALWAYS spend more than they should-as has been alluded to-but surely no meaningfull figures will be determined until after the silly season, thats always been the case, hasnt it?
Not so amazing really. I'ts called inflation coupled with low fixed interest rates. If you have debt at fixed interest, and earn wages that grow with inflation, you will be OK, assuming you stop taking on new debt at a rate equal to or greater than your wages inflate. The effective cost of the money borrowed at fixed interest decreases with inflation. It can even become negative, so that your creditors end up paying you to use their money. Just make sure that you use this borrowed money wisely and don't blow it on wasting assets. Instead, use the borrowed money to buy assets that will appreciate at a rate greater than the inflation rate.