Back in the Black

Are consumers ready to spend again?

Global Market Update - Consumers

Source: USNews.com

Black Friday is coming, with expectations of door-buster deals and madhouse rushes. Last year 141 million consumers visited stores and websites between Thanksgiving Day and the following Monday evening, spending a total over $57 billion. That was down 3% from the year before—a fact that worried retailers at the time—but it turned out to be due to the shortened holiday season. Total holiday sales actually increased by 4%.

What’s in store this year? Sales are expected to rise another 4%, driven by employment growth and rising consumer confidence. The recent fall in gas prices won’t hurt, either. And consumer credit is expanding. Including mortgage debt, consumer balance sheets began to grow the middle of 2013.

Global Market Update - Total Debt Balance and its Composition

Source: Calculatedriskblog.com

Because of low interest rates, debt service relative to income is lower than it’s been for decades.

Global Market Update - Household Debt

Source: FRED

So finish the pumpkin pie and warm up the car. Never mind forecasts of bad weather: when the going gets tough, the tough go shopping!


Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

www.chartertrust.com • www.moneybasicsradio.com www.globalmarketupdate.net
By | 2017-07-17T12:23:11+00:00 November 26th, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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