There is a tax holiday planned for 2011 resulting in more cash in every employee’s paycheck. The 2010 holiday shopping season showed that Americans are slowly becoming accustomed to the way our new economy works. The fears that permeated consumer spending in 2009 appear to be fading. Consumer spending is up for now, but it won’t be clear until the end of the first quarter if the change is sustainable. Christmas spending is seasonal and is always elevated so an overall trend can’t be connected with the holiday season. If there is an overall change, it should be seen over a period of months.
Fox Business reports lower personal savings and increased spending. Savings are down by 3% percent and Americans are purchasing much more this season than they did in previous Christmas seasons. Analysts don’t want to see us return to our poor personal habits of carrying too much credit card debt and having virtually no savings. Major retailers and shipping companies are experiencing record seasons. Fedex just reported its best Christmas season ever. It appears shipping companies might be an excellent investment next year. Internet commerce has clearly matured when Cyber Monday 2010 produces results like this for Fedex. This holiday season produced some interesting surprises for the 2010 year.
Last year saw some new web trends. Amazon.com sold more digital books than paper books in the last quarter of 2010. There appears to be some maturing in internet related interfaces for corporate America. Our spending habits are showing a trend toward an internet preference. This means that internet companies like Amazon, Yahoo and Google will probably be looking at an exceptional year in 2011. Digital books are simply replacing hardcopy books. This trend is emerging while whole industries like video rentals have gone online with giants like Netflix. The bottom line is that Americans prefer not racing to video stores to return DVDs. There is an array of in-home services that provide these entertainment tools for less than twenty dollars a month. Video store rentals are obsolete. Printed books are obsolete. Newspapers are almost obsolete. These are facts of life. Savvy investors in 2011 will note these changes and adjust their investments to make money.
Some hot emerging trends are on-line retailers that offer “flash sales” like Groupon or Gilt.com . These websites are the hottest new darlings of the internet. Groupon recently turned down a multi-billion dollar bid from Google. Some predictions for 2011 are that we will see work at home websites become more popular. With so many Americans at home without work, we will see more websites like workathomechallenge.com emerge to become leaders in the internet. For more information on these topics, visit my informational blog for details.
Fox Business News