On the Trey Ware Show, Karl Eggerss gave listeners a warning about shopping on Black Friday and Cyber Monday.
Trey Ware: Well, speaking of the shop economy and holiday shopping records and things like that, let’s go to the Stevens Roofing Newsmaker Hotline. Karl Eggerss is joining me, creatingricherlives.com and let’s talk about how the shopping weekend has gone. And today is Cyber Monday. So what do you think Karl? How are things going?
Karl Eggerss: Cyber Monday doesn’t have the same ring to it as it used to because it used to be back in the late 90’s, early 2000’s you would go to work. That was the whole point. You’d go to work because they had the high speed internet and you didn’t have it at home. You had the cord plugged in the wall. And now we have high speed internet everywhere. And so Cyber Monday’s lost a little effect but we did see the brick and mortar stores continue to suffer. The sales were down 6.2% this year compared to last year. But overall sales have been great. We’re just seeing the shift continue from brick and mortar to online. And that’s going to continue. And this is an important season because obviously everybody looks at the economy and the consumers we’ve talked about is a huge part of our economy. So how are they doing in terms of shopping this holiday season? So far it looks pretty good. It’s just not physically in the stores.
Trey Ware: Some of the numbers I saw from the weekend, particularly on Black Friday and what have you, looked really great with the exception of all the fighting and stuff though, some of the animals were getting involved in.
Karl Eggerss: Yeah.
Trey Ware: Some of the beasts were getting involved in over the weekend. But other than that, the sales numbers, I haven’t seen final sales numbers, but the stuff that I saw over the weekend look really good, looked sharp.
Karl Eggerss: They have, and I would caution everybody listening that be careful on Cyber Monday, on Black Friday, there are special models of electronics that are made, specific model numbers only to Black Friday and Cyber Monday, and they’re cheaper parts and they’re meant to drive the price down. And so sometimes when you go shop, you’ll go try to compare it and that model doesn’t exist outside of Black Friday and Cyber Monday and there’s been some pretty bad quality stuff made. So be careful what you’re buying.
Trey Ware: Okay. So the stock market, what do you think for a year-end wrap up here? What things are you looking at?
Karl Eggerss: One thing that’s interesting Trey, is that as we are in December now, the stock market’s had such a good year that if you’re sitting on gains, and you’re wanting to take some profits, and sit on some cash, and maybe see how next year plays out, you’re probably going to wait until January because of the fact that you have taxes to pay. Nobody wants to pay those capital gains taxes. So they might defer those sales until January. Conversely, for these stocks that have been beaten up all 2019 they probably won’t get any love until 2020 because we might see a rotation at that point. So as we’re so late into the year, it would surprise me if we had anything that would repeat last year we had some real sharp selloff because it’s just too many taxes to pay. So probably everybody’s going to sit tight until we get into the new year.
Trey Ware: Yeah. As you well know when it comes to the taxes, pay me now or pay me later. Right? So you sell on January, you’re going to pay it in next year. So might as well pay me now or pay me later. But you know, Jerome Powell last week was, or the week before, was talking about the economy and his projection for the economy and other economists have spoken out as well. They’re very bullish and very optimistic about 2020. It looks like anyway.
Karl Eggerss: Yeah. I’ve been saying on here for months that I didn’t think we were going to go into a recession and now you’re starting to hear people say, maybe we did avoid one. That doesn’t mean we won’t ever have one. But in the short term we probably aren’t going to have one. So you have Jay Powell saying, “Look, the economy is doing pretty well. We may not need to lower interest rates anymore.” And then you see President Trump who tweeted again this morning attacking the Fed saying, “You need to lower interest rates and loosen monetary policy.”
Trey Ware: Yeah.
Karl Eggerss: So you have this, you still have this battle going on and that’s … I wouldn’t look too much into that. Every president wants-
Trey Ware: Sure.
Karl Eggerss: Lower interest rates coming into an election especially. And Jay Powell is looking at the numbers and obviously trying to do the best they can to say, “You know what? We have it at a proper level.” And so that’s going to continue the next several months. But you’re not going to see him get fired. You’re not going to see any of that, but you’re probably going to continue to see president Trump pound the table. And look, what has the Fed done? They’ve cut interest rates multiple times after he’s been hammering them.
Trey Ware: Maybe they ought to do it again. You never know.
Karl Eggerss: They may do it again. That’s right.
Trey Ware: All right, Karl Eggerss. Thank you Karl, from creatingricherlives.com. Check him out.