Boots on the Ground
The consumer saying they are going out and spending money and actually doing it are two completely different things. This year, the consumer has really backed up that data by getting out and spending money at stores as well as online. In fact, online retail sales hit 7.9 million dollars on Friday, which is up nearly 18%, year-over-year.
Consumer Confidence
We have had people ask us: How high can this market go and will we continue this rally? One thing that can cause stocks to go up has to do with earnings. If retail sales are strong, that indicates that the consumer is out there spending money. The data is still pointing at consumer confidence being strong and corporate earnings continuing to go up.
Corporate Spending
One thing to point out regarding payroll is that there will be 13.2 million more paychecks coming out in December compared to last year. This number correlates with unemployment numbers being a lot lower. Corporations are out there spending in anticipation of the market being even better next year. One indicator of this is share buybacks. This results in a company buying back their own stock because they believe it is undervalued. Corporations also have been spending money on large equipment and things to produce more. All of these items are pointing to long term confidence.
Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here
Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here
Trey Booth, CFA®, AIF®
Senior Vice President
Wealth Consultant
Email Trey Booth here
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.
Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.
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