As legendary investor Peter Lynch pointed out in his must-read book ‚??One Up on Wall Street,‚?Ě we investors have to watch the behaviors of those around us. Those people consist of individuals, better known as the consumer, corporations and, of course, the government. What are these groups buying? Are they spending more or less? How are they spending? If they aren‚??t spending, what are they doing with their capital?
These are some of the questions I think about when contemplating the psychographic aspect to the PowerTrend way in which I look at the world. Make no mistake; it isn‚??t the only data that I weigh. After all, I was a fundamental Wall Street research analyst for decades and I know there is no such thing as a silver bullet when it comes to investing. That means triangulating several streams of data to get a real signal on what is or isn‚??t going on.
That‚??s why each Christmas season I walk the malls. I admit it sounds a little funny, but I find it gives me a very accurate picture of not only what Mr. and Ms. Consumer are buying, but where as well. Now you might think a crowded shopping mall is a good sign, and it can be, but I have found over the years that a crowded store can be a misleading indicator. That is why I watch and, from time to time, count shopping bags, as well as keep track of which retailers are running sales, from big to over the top.
Finish reading about retailers winning at Christmas on Eagle Daily Investor.