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 shouldnโt get hung up on the financial mediaโs coverage of Black Friday sales volumes. He says one data point in time isnโt 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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