The week of Thanksgiving has become one of the most anticipated shopping periods of the year, with analysts projecting up to $60B in sales today—Black Friday—alone.
While retailers slash product prices, they try to compete and outdo each other by offering the best Black Friday or Cyber Monday deals.
Consumers, on the other hand, are on the lookout for the best bargains available and are willing participants in this shopping spree.
This year’s Thanksgiving week will shatter records
According to Statista, Thanksgiving week was projected to hit record sales in the US.
Overall, Statista projected Thanksgiving day sales to rise close to 14% to $3.3B. Black Friday and Cyber Monday were expected to soar by 18%, with an overall estimate of $23.4B in total sales.
Turns out sales will eclipse that today.
“Black Friday is bigger than a 24-hour shopping sprint or even a week-long marathon,” Accenture Strategy’s Frank Layo told Business Insider this morning. “It’s turned into a month-long extravaganza which started with promotions just after Halloween, and will continue well after Cyber Monday.”
Peak holiday season
While the holiday season in the United States begins in late October, it peaks during the second half of November. We can see above when US consumers expect to do holiday shopping is the highest in late November at 72%. This time coincides with Thanksgiving week.
According to Deloitte’s report, holiday shoppers will spend an average of $1,536 in the holiday season of 2018 with gifts accounting for $525 of the total amount spent.
In the Thanksgiving week of 2017, shares of Amazon [AMZN] touched a then all-time high of $1,195.83 and propelled CEO Jeff Bezos’ net worth into the untouched $100B dollar territory.
It will be interesting to see if Amazon shares recover following record sales. The stock has been pummeled in the recent past and has lost over 24% in market value since October 2018.
Total holiday spending might cross $124B this season
According to market research firm ADI, consumers might spend a whopping $124B this holiday season, up from $108.2B last year. Taylor Schreiner, principal analyst at ADI stated, “This consistent growth is itself a surprise. To have a $100B industry continue to grow in double digits is unusual and impressive.”
This holiday season is set to be a blockbuster one for online and physical retailers. Watch this space as we will shortly analyze the impact of strong holiday sales on the stock prices of retail companies.
VIDEO: How Far Does $150K A Year Get You In New York City?
No matter what metric or list you look at, it goes without saying: New York City is one of the most expensive places in the world to live in.
In this video, CNBC spoke to a Millennial who runs her own brand consulting agency and wants to #WealthHACK her way to retirement by 40.
She makes $150K a year. But how far does that actually get her? Check it out.
How to Create A Financial Roadmap: Investing In A Volatile Market
The market has been heading up, up and away for so long that many investors may not remember (or even experienced in some cases) what it was like to invest during times of extreme volatility. However, the bull market has to end sometime—and probably for longer than a single quarter like we saw at the end of last year.
So how do you go about making investment decisions when it becomes very challenging to find positive returns? It can be tempting to switch out your entire portfolio when there’s a sudden change, but that may not be the wisest move. Before making any changes, you should consult your financial roadmap, and if you don’t have one, then now is an excellent time to make one. The Securities and Exchange Commission advises investors to look at their entire financial picture before making any big changes. This step-by-step guide will help you get everything down on paper.
#1. Set goals
To start creating your financial roadmap, write down any goals that you have. Perhaps you want to purchase a new home in 10 years. You’ll also want to determine when you want to retire, although this age could change over time if you discover that you can’t retire as early as you want to. Decide what types of things you want to save money for, whether it’s a new home or car, an education, retirement, medical bills, a “rainy day” fund, or anything else.
Don’t forget to set timelines for each goal so you have an idea of when you might be able to achieve these goals realistically. The SEC has a number of calculators and other financial tools to help you set realistic timelines for your goals.
#2. Look at your current financial picture.
Most investors already know the basics, but pulling everything together into a roadmap might seem a bit overwhelming because it can be so easy to forget something. Even though you may think you know everything you need to know about your current financial picture, just having all of it down on paper will help you get organized.
Make a list of all your liabilities and assets, including individual holdings in your portfolio[s]. List all your checking and savings accounts and their balances, the cash value of your life insurance policies, real estate, home, retirement accounts and other investments, and any personal property. Knowing which stocks or other assets you have money in can make it easier to decide where you want to move your money when the market turns.
On the liability side, list your mortgage, credit card and bank loan balances, car loans, student loans, and any other liabilities. Add up your assets and liabilities and subtract your liabilities from your assets to see your net worth. If you have a negative net worth, you can start making plans to get on track. The Foundation for Financial Planning has some excellent worksheets to help you get started with making your lists so you don’t forget anything.
#3. Consider your risk tolerance before making any changes.
After you’ve made a list of all your investments and assets, it’s time to think about your risk tolerance. As the winds of the market shift around, risk sentiment will move as well. There is no such thing as an investment that is 100% safe.
A good guideline for determining the best mix of risk in your investments is to subtract your age from 120 and put that percentage of your portfolio in stocks and the other percent in bonds. For example, a 40-year-old would put 80% of their portfolio in stocks and the remaining 20% in bonds.
Of course, there are many other asset classes to consider too, and picking stocks is literally a full-time job. Thus, you may want to consider an index fund for your stock holdings if you just want to set it and forget it. However, if you want to take on a bit more risk in part of your portfolio, there are many actively managed funds with excellent track records to take the guesswork out of stock picking.
As you’re setting out all your investments and thinking about making changes, make sure your portfolio is properly diversified so that when one asset falls, another one gains to make up for the loss in the other one. Think over every potential change carefully before making a move to avoid unnecessary turnover and fees associated with trading.
The SEC also has a handy guide here which explains more about investing and creating a financial roadmap.
CNBC: Here’s Why WeWork Wants To Go Public
News broke recently that WeWork’s going public in September. In this video, CNBC breaks down why they’re going public.
Before you watch, though, here’s some context.
WeWork’s recent S-1 filing — the paperwork you file with the SEC right before you go public — had the entire internet up in arms, including ourselves, trying to decode how the heck WeWork justifies its insane valuation.
Considering, ya know, IWG, a direct competitor, has nearly double the revenue, five times the members, is $2.5B ahead on the bottom line and…well, you can sort of see where this is going.
Despite earning an insane $47B valuation this year, it’s bleeding dough. Yes, WeWork grossed $1.8B in 2018…but it also lost $1.9B.
Be that as it may, WeWork is going public this year (via parent company “The We Company”), the latest in a string of high-profile tech IPOs in 2019.
And speaking of tech. Despite numerous “tech” mentions in the S-1, critics are claiming WeWork is little more than a real estate company.
As far as the We losses go, CFO Artie Minson told CNBC that investors need not worry about those grim financials, but instead to look at WeWork’s losses as “investments” that will lead to greater cash flow. (Which is very possible.)
And even if short-term losses eventually unearth long-term cash flows, will they be enough to justify its lofty valuation…and even loftier ambitions?
While we’re waiting for time to tell on WeWork’s future, if you’re looking to raise your startup game right now, go check out our content partner More Labs’ brand-new drink Aqua+. (Yes, the same More Labs behind this drink that broke the internet.)