Personal Wealth Management / Expert Commentary

Ken Fisher Explains How Black Friday Retail Sales Impact Stocks

Fisher Investments founder, Co-Chief Investment Officer and Executive Chairman Ken Fisher says investors shouldnโ€™t get hung up on the financial mediaโ€™s coverage of Black Friday sales volumes. He says one data point in time isnโ€™t particularly meaningful to markets.

Transcript

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coming up on black friday there's always
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a certain amount of
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people trying to read too much into too
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little when it comes to things like like
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friday sales
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and the reality of that is
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that
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black friday
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reported volume numbers don't actually
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mean anything of any significance at all
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you should largely pay no attention
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regardless of what the media says you
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should just ignore it
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the
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fact is
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we have a long history of black friday
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we have a long history of stock prices
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we can run correlation coefficients
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between the one and the other to see the
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degree to which there's any potential
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causality of black friday to stock
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prices and the answer is there isn't
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secondarily the reporting of these
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things in this day and age is not so
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totally accurate in that
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the
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location
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of where these sales come from
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isn't
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necessarily where it used to be and
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therefore the immediate reporting isn't
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necessarily accurate in a way that i
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would have any confidence in of being an
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indicator if it could ever be an
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indicator
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uh finally i make the point that a lot
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of times in all of these kinds of things
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the
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not just black friday but
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many others that relate to a single
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purported event
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how it would be received by securities
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could well be
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whether it was better or worse than what
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people thought in advance that it would
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be and yet even then at most all it
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tends to do
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for better or for worse is to generate a
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day or so of volatility the good kind of
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the bad kind pleasant kind or unpleasant
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kind up or down and and
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none of that is anything more than
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people getting excited over nothing so
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again i encourage you
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when you see media headlines about black
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friday and all kinds of people trying to
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read things into it you should just
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ignore that there's nothing in that to
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read into that is meaningful
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thank you
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[Music]
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