American Consuming Culture.

7-7 Market Highlights (November 24 – November 30, 2019) 

Hurray, the Black Friday is here! Some may utter cynical snobism on American consuming behavior, but lest you not forget the foundation of the greatest economy of the world is the consumer. The core strength of this great country is based on the consuming, producing, and active participation of the people and by the people of America. And, Black Friday and Cyber 24/7 Day activities alike extol the vibrancy, wealth, and essence of America... Say what you will... Just look at the people risking everything, life, origin to come to America... Happy Holidays to all. And, lets take a moment to reflect on the less fortunate this holiday. Perhaps, have a heart to share your abundance.

11/29/2019: DOW-28,051; S&P500-3,141; NASDAQ-8,665;  Gold-$1,470.90; Oil-$55.54; US 10-Year: 1.772% 

Here are the highlights of the 48th week of 2019:  

1.  Black Friday to Exceed $7 Billion.         Shoppers spent $4.2 billion online on Thanksgiving, a 14.5% increase from last year and a record high, according to data released by Adobe. And, Black Friday online sales are on track to hit $7.4 billion as of 9 a.m. ET as more than 165 million people are expected to shop over the weekend, according to the National Retail Federation. But, the brick and mortar, Macy’s is the worst-performing stock in the S&P 500 in 2019, plunging 48%. The American consumer strength has been a linchpin for the U.S. economy as the U.S.-China trade war rages on while overseas growth slows down. In the third quarter, consumer spending grew by 2.9% as overall GDP expanded by 2.1%. Consumer confidence is also near historic highs.

2.  Hong Kong Support Violence Act…?        Trump signs bills, overwhelming bipartisan support, backing Hong Kong protesters into law, despite Beijing’s objections. President Trump signs two bills backing Hong Kong protesters, the White House says in a statement. The president says he “signed these bills out of respect for President Xi, China, and the people of Hong Kong.” He also says he hopes “Leaders and Representatives of China and Hong Kong will be able to amicably settle their differences.” On Thursday, the Hong Kong government “expressed strong opposition” to the bills becoming law and said it “extremely regrets the U.S. repeatedly ignoring Hong Kong’s concern. A government spokesman also said the bills will send the “wrong message” to protesters, “providing no help to ease Hong Kong’s situation.” Beijing threatens to take ‘strong counter-measures’ against the US after Hong Kong bill signings.

 3.  India GDP Growth Slowest Since 2013.          India's growth slowed to its weakest since the first quarter of 2013, according to Reuters, and was down from the 5% registered for the previous three months. The South Asian country is currently facing a number of challenges. Apart from an economic slowdown, there is an ongoing crisis in the financial sector, which has hamstrung lending. India’s economic output slowed to 4.5% in the three months that ended in September, and experts are predicting a further slowdown for the world’s seventh-largest economy. But economists predicted that India’s growth slowdown may bottom out by the end of 2019 and that it could see a gradual “stimulus-led” recovery in 2020, driven by a revival in consumption. India surprised with a $20 billion fiscal stimulus package in September, mostly on corporate tax cut. Finance Minister Nirmala Sitharaman also sought parliamentary approval on Thursday to spend another $2.7 billion in addition to a budgeted 27.86 trillion rupees ($388 billion) in the current fiscal year that ends March 2020, Reuters reported. Also, public spending has also picked up pace despite weak revenue collection.

4.  College Graduate Earning Expectation…?        Well now, Students can see exactly how much they can expect to earn based on college, major and degree. After years of data collection, students can use the College Scorecard to see the exact earnings of graduates broken down by school and by the program. Here’s how: Search by school. The “Name Search” section of the College Scorecard lets students type in the name of their school to can see how much graduates with different degrees earn. Or, Search by program. Another way student can use the new tool is by using the “Custom Search” feature, what field they want to study and what degree (certificate, associate’s or bachelor’s) they want to earn. Students can also filter schools by graduation rate and average annual cost. Students should think about how much their monthly student loan payments will be after college, which ideally wouldn’t be more than 10 to 15% of their paychecks after graduation. “The most crippling debt is when you don’t complete [a degree],” he explained. “If [students] don’t [finish] it can be crippling because they’re not going to have the wage bump from getting that college credential and so you’re going to be earning roughly as much as someone with a high school diploma is, but you have taken out $10,000 in debt.” 

5.  A Grand December for Stocks?   December could be a good month for the stock market, but there’s one big risk. With November coming to an end, the stock market is set to enter what has been the best month of the year for stocks. The S&P 500, up more than 25% for the year already, could gain further in December, and historically, the S&P has added an average 1.6% in the final month of the year. The outcome of trade discussions between the U.S. and China could make or break the market’s rally. November’s employment report and ISM manufacturing data are the biggest economic reports expected as December gets underway in the week ahead. Stocks have had a bang-up year so far, and they’re heading straight into the month that is often the best of all.

6.  Personal Loan, Fastest-Growing Debt.        Personal loans are growing at an 11% annual clip, according to Experian, faster than student loans or credit card balances. Personal loan balances now exceed $300 billion, as of the second quarter of this year, according to Experian, a whopping 11% yearly increase. For good reason, too, as personal loans can help to consolidate credit card debt, or make funds available for major projects, such as a home remodeling effort. For many of us, the allure is hard to ignore, but personal loans do differ in some keyways from other types of credit you might use, such as credit cards. Well, for borrowers with good to excellent credit, personal loans can add to your credit mix, and reduce the interest you pay for large home-improvement projects or other major expenses. For those with less-than-perfect credit, however, consider whether factors like interest rates, origination fees, and lack of perks, and whether a personal loan will result in significant savings.

7.   Financial Psychology for Savings.         According to Dr. Brad Klontz, financial psychologist the average American is in poor financial health. And, those with credit cards carry more than $5,500 in debt and, according to the American Psychological Association, 81% of Americans say that money is a significant source of stress in their lives. Here are five themes that can help consumers harness the power of financial psychology to crush their savings goals: 1)Identify three financial goals, 2) Name your financial goals: We need to give our financial goals specific, exciting names that conjure up images and feelings that thrill us. 3) Timestamp your goals: 4) Picture your financial goals: Take time to create visual representations of your financial goals. Have fun. 5) Automate your success. Perhaps executing on these powerful steps can significantly increase your ability to achieve your financial goals. Why not try.

These are my researches and analysis of the highlights of the week. Perhaps you should take a closer look at them, do additional research and analysis if these are interesting to you. This “7–7 Market Highlights” is presented for general knowledge, the resource for management, and perhaps as a tool for career development, and building wealth. As always, “Stay Curious” and “Think for Yourself”, you decide on your own terms. 

Mahalo. I welcome your thoughtful comments, “like” notes, and “share” of this publication. 

~ S. Vincent Shin

   www.dhirubhai.net/in/vshin

References and Image credits to Bloomberg News, The Wall Street Journals, Getty image, AP Photo, Reuters, CNBC..., and special thanks to Image & Visual Consultant @U.Y. All references, news, and images are from open source and public domain.