🛍️💸 Black Friday Shopping Hits Record!
Happy Sunday!
Despite the paltry discounts as of late for BFCM shopping, American consumers showed up with their credit cards ready to consume. Hope you found some good deals this weekend. I didn’t do much shopping this year, but I did get a new light for my set so hopefully, you notice in future uploads.
Stay tuned for a video tomorrow (Monday) where I reveal how much YouTube has paid me since I joined the platform! Keep an eye out!
Enjoy today’s Sunday Primer.
- Humphrey, Tim, & Rickie
Market Report
Black Friday Shoppers Set Online Spending Record
Black Friday in the United States witnessed record online spending of $9.8 billion, a 7.5% increase from the previous year, according to Adobe Analytics.
This growth was fueled by strong demand for electronics, smartwatches, TVs, and audio equipment, with consumers increasingly using buy-now, pay-later options.
Salesforce also reported a 9% year-on-year growth in online sales, driven by items like footwear and sporting goods.
Mastercard data of this year’s Black Friday sales found that in-store sales rose just over 1% versus online sales, which grew by over 8% compared to last year.
Binance Founder Changpeng Zhao Steps Down, Pleads Guilty
Changpeng Zhao, the CEO of Binance, the world's largest cryptocurrency exchange, pleaded guilty to U.S. anti-money laundering law violations in a Seattle federal court.
This plea is part of a settlement to preserve Binance's operational capabilities, with the company agreeing to pay fines totaling $4.3 billion.
Zhao himself agreed to a $50 million criminal fine.
Binance was accused of facilitating transactions with sanctioned groups and encouraging U.S. users to conceal their locations to evade compliance with U.S. laws.
Zhao faces a potential 18-month maximum prison sentence, with sentencing scheduled for a later date. The deal does not include a settlement with the SEC, which sued Binance and Zhao earlier for violating U.S. investor-protection laws.
Fed Minutes Show Unity on Cautious Approach to Future Rate Hikes
Federal Reserve policymakers, in their latest meeting, agreed on a cautious approach towards future interest rate adjustments, emphasizing the importance of basing decisions on progress towards their inflation goal.
Despite strong consumption and employment data, the Fed maintained the benchmark lending rate between 5.25% and 5.5% for the second consecutive time, acknowledging the impact of higher rates on households and businesses.
The meeting minutes revealed concerns over tighter credit conditions and rising delinquency rates, with several participants noting businesses were already feeling the pinch of higher borrowing costs.
The Fed aims to balance the risks of over-tightening, which could lead to a recession, against not tightening enough to effectively control inflation.
Current inflation remains high, and further evidence is needed to ensure it is on track to reach the Fed's 2% target.
Wall Street Throws Caution to the Wind to Keep Up With Stock Rally
November's stock rally, one of the largest in the last century, has led to a significant decline in investor caution, with demand for protective strategies dropping sharply.
This shift is driven by the belief that the Federal Reserve will stop raising interest rates and may start cutting them in 2024.
Optimism can be seen in the S&P 500's nearly 9% rise this month and the Russell 2000's gains, indicating a strong appetite for riskier assets like junk bonds and small-cap equities.
While Wall Street firms predict further gains, with some forecasting record highs for the S&P 500 next year, there are still voices of caution warning about recession risks and the possibility that sustained high rates could lead to an economic downturn.
Zoomers will overtake boomers at work next year
Gen Z is expected to surpass Baby Boomers in the full-time U.S. workforce by early 2024, marking a significant generational shift.
Although Millennials and Gen X currently outnumber Gen Z and Millennials are projected to dominate the workforce for many years, with Gen Z not expected to surpass them until the early 2040s, the increasing presence of Gen Z is bringing about a pivotal cultural change in the workplace.
Home vacancies near all-time lows as housing shortage bites
The current housing shortage in the United States is historic and significantly contributing to the negative perception of the U.S. economy.
The tightness of the housing market is evident from record-low vacancy rates.
While recent data indicates a slight uptick in new home construction for the second consecutive month, housing analysts warn that the level of construction is far from sufficient to meet the growing demand.