Thought of the week. Dec 10 2010
Last week Scott got a pleasant surprise when apart from the Saturday show he got a bit of extra time with Glenn on air late Sunday afternoon talking all things finance which was good.
Glenn: I got a new set of golf clubs for my wife
Scott: Great trade.
Glenn Stevens didnt put rates up no surprise there. However what was a surprise is that the Reject Shop downgraded its earnings for the financial year by 20% with lower exectations of Christmas good sales and key summer lines. What does this mean when the Reject Shop aren’t expecting a bumper season. It illustrates how tough Australians are finding it out there and the last rate rise is a killer.
Is the US consumer awakening from the slumber? ie spending/consuming?
The US consumer accounts for 70% of that economy.
- Although consumers are still paying off debt, they are spending more.
- Obama has extended Bush’s tax cuts
- Retail sales are improving, with October the best month in 7 months. Reports on Black Friday (so named as retailers return to the black), reported increased foot traffic and increased spend per transaction. The key now is the lead-up to Xmas shopping. Emptying shelves will lead to a further round of re-stocking post Xmas, boosting production.
- The National Retail Federation has forecast November – December holiday sales will rise by 2.3 percent from a year ago, the most since 2006.
- Good news all round there.
The MTR Weekend simulation game, Glenn Ridge is only just infront as The Mug put every cent he had on England winning the 2nd test at a $1.90. In what the mug described on air as the bet of the decade and he delivered. Find out where he is at.
All details including an update daily are on the home page of www.thefinanceguru.com.au
Thought of the week:
Personal Finance New Year’s resolutions – Keep it simple. After all, the key to successfully achieving your goals is to make them achievable