Sunday, December 4, 2011

From Our It-Ain’t-Necessarily-So Dept.: Did Black Friday save the season? Beware the hype.

Retail sales are spectacular, up 16 percent from last year! The best Christmas in a decade!

According to Barry Ritholtz iIf you opened a newspaper or flipped on a TV last weekend, you were deluged with statements hyperventilating about holiday retail sales. Declarations that this was the best Black Friday in years, and it bodes well for the holiday season.

Savvy investors have learned to take these over-the-top declarations with a grain of salt. If you have paid attention in the past, the reality is far different from the spin: No Virginia, surveys of our gift-shopping intentions do not reveal our actual purchases. We humans are bad at forecasting the future and, as individuals, we are especially poor at predicting our own economic behavior. Marketers and trade groups, well aware of this, exploit that knowledge.

Let’s take a closer look at the annual hype that kicks off the season I like to call “Shopmas.” The actual data are much more revealing about the state of the consumer, the retail sector and the overall economy than the holiday hype….

Wait, wait...there's more at http://www.washingtonpost.com/business/did-black-friday-save-the-season-beware-the-retail-hype/2011/11/29/gIQAfNCUMO_print.html

No comments:

Post a Comment