Wednesday, January 14, 2009

Greate news - Retail sales plummet 2.7 percent in December

The stock market has crashed on the news that retail sales were worse than expected, and the lowest in 40 yeas. Am I the only one who sees the silver lining in this dark cloud?
Retail sales plunged far more than expected in December, ending a dismal holiday season with a record sixth straight monthly decline, and there's no relief in sight as consumer demand remains weak.

The Commerce Department reported Wednesday that retail sales dropped 2.7 percent last month, more than double the 1.2 percent decline that Wall Street expected.

The December plunge in sales, which followed a November drop revised downward to 2.1 percent, confirmed private sector reports that retailers had suffered their worst holiday shopping season since at least 1969.
Now is the time to invest in stocks because come nex Holiday season, there is a distinct possibility that retail sales will be better than this nadir they have hit. Analysts and market watchers are going to jump with joy at the positive news and stucks will surge upward.

There is precedent for this - it's called the last 15 years. The US consumer's purchasing power has increased year-on-year since Clinton came into power, and like every bubble, this one was sure to burst. Things will line up in the coming years and everyone will prosper...

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