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The US markets were up again last week after record retail sales figured were reported over the weekend. Amazingly, about 44% of the United States population was out looking for a deal over the Black Friday holiday shopping weekend.
Retail sales were up about 13% from last year’s Black Friday weekend. In addition, after taking a closer look at the figures, online purchases were up about 21% while in-store sales were DOWN about 2%. This marks the first decline of in-store retail sales since 2008. In addition to the impressive 13% retail sales increase over the Black Friday weekend, Cyber Monday sales grew by an astounding 26% from just 1 year ago. As one analysts said, “clicks are growing faster than bricks”.
The drama continues in the Euro Zone as another bailout deal was agreed upon for Greece. The deal extends the terms of the Greek loans by 15 years and removes the interest payments for the next 10 years. Amazingly, the scale of the Greek fiscal crisis and the threat it represents for the entire Euro Zone, is the only reason they are getting such special and extraordinary deals. However, many analysts are concerned that other Euro Zone countries will begin losing their patience for their fiscally irresponsible Greek neighbors.
The US Fiscal Cliff debates are stealing the headlines as most analysts, economists and investors believe the world markets are waiting for a resolution before they invest, buy, hire, lend, etc. Over 100 companies have announced “special dividends” recently as a way to get some cash off their books before the end of 2012 when long-term capital gains taxes might increase from 15% to ??? This new reality has investors concerned about how tax changes could negatively impact US GDP growth in 2013 along with downward pressure on hiring activity. Only time will tell.
This is for illustrative purposes only and is not indicative of any investments. Investment value will fluctuate with market conditions. Past performance is no guarantee of future results.
(Sources: www.bloomberg.com, www.wsj.com, www.economy.com, www.ltam.com)
