Was Black Friday a Retailing Disappointment

Grand Rapids, MI -- (SBWire) -- 12/09/2010 -- With Black Friday being one of the biggest shopping events of the year, one would have expected it to be a significant day for retailers with the improving economy and all, right?

Wrong.

According to financial advisor Dennis Tubbergen, he does not believe this year’s total holiday sales will improve much over last year’s numbers.

Tubbergen, who is CEO of USA Wealth Management, LLC, often discusses the U.S. and world financial markets in his economic blog and his Moving Markets™ monthly newsletter.

Referring to a Bloomberg Businessweek.com article published November 28, 2010, Tubbergen notes the article claims sales rose a mere 0.3 percent, even though in-store traffic was heavy.

“While the media is talking about the improving economy, the general population is not spending much more than they did last year at this time,” explains Tubbergen. “This is not a good sign for the U.S. economy, which is 70 percent dependent on consumer spending.”

Tubbergen believes the low sales numbers from Black Friday are indicative of a potentially deflationary environment – a climate where individuals do not spend.
“Instead of spending, people sit around waiting for prices to drop even further before they buy,” Tubbergen claims. “This deflationary disease has infected Japan for over two decades. And now, due to our government following the same policies as the Japanese government, we may be faced with the same disease.”

Tubbergen’s forecast for this year’s holiday sales?

“I look for the retail sector to have about the same sales numbers as last year in spite of the mainstream media talking about economic recovery,” concludes Tubbergen.

For more information on Dennis Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.