Best Black Friday Since 2007 of Utmost Importance to China, According to Leading Financial Newsletter Profit Confidential
Consumers opened up their wallets and took out their credit cards this Black Friday to the tune of $11.4 billion. This was the biggest year-over-year jump in consumer spending on Black Friday sales since 2007 despite consumer confidence in the U.S. being at its lowest level since March 2009.
- Bellingham, WA (1888PressRelease) December 02, 2011 - According to Michael Lombardi, lead contributor to popular e-newsletter Profit Confidential, the importance of the results this Black Friday goes beyond the U.S. borders…all the way to China.
"The actions of American consumers make up for about 70% of U.S. gross domestic product. Consumer spending is not just important to American companies; it is of utmost importance to foreign countries," says Lombardi.
According to Chicago-based ShopperTrak, consumer spending on this Black Friday rose 6.6% from the same day in 2010. And online consumer spending jumped even more on Black Friday compared to last year-up 24%, according to a Coremetrics benchmark.
Writing in Profit Confidential, Lombardi looks at the link between the U.S. and China. "If consumer spending is rising sharply in the U.S., the manufacturing machine in China continues to roll and the fears of China's economy cooling too quickly subside. This allows China to continue buying U.S. Treasuries. It's all one big cycle based on U.S. consumer spending."
The million-dollar question remains: are consumers out shopping because of pent-up demand or are the deals just too good to pass up? And if those deals are too good, will deep discounts translate into profits for the big retail companies?
Lombardi's analysis "The answer to this question won't be known until retailers start reporting their fourth-quarter earnings some time in late January. For now, American consumers are back in spending mode and that's good news for America, good news for the Chinese, good news for our stock markets!"
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six
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