We’re talking about the economy today on the Ilyce Glink Show.
I find I’m confused why the stock market is at 13,895, nearly at its all-time high, while gold is also at an all-time high, and a barrel of oil is nearly at an all-time high (at $83 per barrel). Meanwhile, consumer confidence is holding up.
On the show this morning, we took a couple of calls from folks who say that on the ground, if you’re making good money, life looks pretty good. The manager of a Lexus dealer called to say sales are up 23 percent this year! That’s pretty good. Another caller, Mack, said he’s in sales and he’s having a good year, too.
(BTW: It’s not sour grapes. I’m also having a good year financially.)
But some analysts say we’re looking at at the wrong things. Harley Davidson, the motorcycle manufacturer, says sales are way down. Manufacturers of RVs aren’t doing well either. These analysts say that looking at same store sales for Target, Costco, and WalMart is a red herring. No matter what, people will still buy stuff — they’ll just buy less. Look to discretionary purchases to see what’s going on.
Is this true? Are you thinking of pushing off a big expenditure this year? Or, are you buying more because life, as we head into an election year, is good?
Feel free to post your comments here. Hope you can tune into the show.
Sept. 30, 2007