Black Friday Bargains, or Buyers Regret?
Posted on November 23, 2018
Today is of course the hallowed day of the year for retailers; BLACK FRIDAY. Now, whilst we have our own (absolutely amazing) Black Friday sale offering 60% off our Million Dollar Traders course, most other ‘deals’ that you will undoubtedly be bombarded with today are hardly worth your time or money. Let me tell you why…
The fact is that as consumers, we all (to varying degrees) spend money on things that we don’t really need. We consider these to be ‘liabilities’. A liability is defined as a purchase that costs you money in the long run. An asset on the other hand is something that earns you money after buying. In our world as professional investors, and for those of you managing your own portfolios, everything we do is geared towards seeking out and owning the most profitable assets (whether they be stocks, bonds or alternatives such as real estate).
But on Black Friday (and throughout the the holiday season for that matter) we have been conditioned by capitalist brands to spend, spend, spend on consumer goods that we don’t really need, often to satisfy reciprocal of gifting. I don’t want to come across as Scrooge (I do more than my fair share to grow the consumer discretionary sector!), though it is worth reminding ourselves of what our priorities should be if we are to grow our personal wealth in the long term. And that’s our mission at the Academy - to help you on your path towards greater financial autonomy and freedom via public asset markets.
As we often do in this weekly blog, I like to showcase some of the ideas that have been generated in our Trading Club using our Checklist Process. This week’s video analysis shared an interim update of our various Checklist scores, and notably highlighted reversals in US Equities (SPX Index), Gold (XAUUSD) and the British pound (GBPUSD). Its always important to know which way the fundamentals are skewed and whether they are shifting, and becomes all the more vital to avoid being on the wrong side of the market when volatility increases as it has recently. Markets can also sustain existing trends, as we are witnessing in Crude Oil, which today hit a 2018 low and is down more than 30% off the high since the relentless selling began as our Checklist scored -5.
The Checklist score shows improvement to -3, but remains negative (this is one of those Black Friday ‘bargains’ I won’t be rushing to buy!).
And here's Sterling, which has reversed from a positive score at the beginning of the month (favouring longs) to being massively on sale…
And as I also mentioned, equities may have been discounted, but are they really something you want to buy at -1?
Time will tell whether these sales turn out to be ‘bargains’ or sources of 'buyers regret’ during the year end consumer bonanza. My process tells me that there are far better purchases out there, that I would be better for spending my money on than gadgets, gold or Crude Oil! Of course, if you like to take advantage of a true consumer bargain on Black Friday, invest in yourself, in your skills and knowledge! We have the best value investor education for you: get 60% off our Million Dollar Traders course! This course offering also includes 3 months of complimentary PREMIUM Trading Club access!
May your Black Friday be bright,
James Helliwell | Chief Investment Strategist
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