We wanted to share a few fun facts to start us off today that we think will help investors and consumers enjoy this upcoming Thanksgiving week. The American Farm Bureau came out with its annual survey of the cost of a Thanksgiving dinner, and it went up from $48.90 to $48.91. It’s not a huge hit to the wallet but it’s the first increase since 2015. The biggest increase came from the sweet potato. You might get a little pushback from family members but if you avoid the sweet potatoes, you could save some money. The biggest drop in price was for Turkey. You’ll save $0.91 on a 16-pound Turkey this year. However, the market historically should more than cover the cost of Thanksgiving. From when the market closes on Tuesday to when the market closes on Friday for the week of Thanksgiving, the S&P 500 has been up 58 of the last 69 years. That’s an 84% hit rate which is not bad. In only four instances, 1951, 1987, 2009 and 2011 was the S&P down by more than 1% so even when it’s not up, it’s, it’s not bad.
Paying Less This Season
Consumers are paying less for turkeys but they’re also paying less for gasoline. The average gallon of gasoline is $2.60 which is around $0.40 less than it was last year at this time. This is great news because consumers will have more money in their pockets from higher wages, low gas prices and lower turkey prices. We said a few weeks ago that we expect consumer spending to increase 4% in this holiday season from last year. That’s important because we have six days less this year in the holiday spending season than we did last year. The consumer is looking good heading into Thanksgiving which is always good for the markets and the economy.
Strong Finish to 2019
It’s hard to believe 2019 will be over in a few weeks. We are coming up on the holiday season and before you know it, we will be in the year 2020. We’re still looking to see corporate America start to invest back in their companies and products as well. The consumer could drive us into a great finish to 2019 and a strong start to 2020.
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.
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