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From shopping carts to stock charts - Investing during Black Friday

Date: 24 October 2024

3 minute read

The countdown to the holiday season is well and truly on. And there are two particular days that epitomise retail culture at this time of year: Black Friday and Cyber Monday. While these days are a shopper’s paradise, investors are also intrigued by the potential impact on the stock market.

How Black Friday affects the stock market

Black Friday is more than just a shopping spree; it can be a barometer for consumer sentiment and retail performance. Strong sales are reflective of buoyant consumer confidence and can also hint at a prosperous holiday season, boosting stock prices for retail companies.

Credit card spending data provides an early insight into the level of sales activity and the near-term performance of stocks can also reflect retail trading. However, it is worth noting that trading volumes are typically lower on Black Friday since it’s a half-day for the stock market, so be mindful of market moves not supported by hard retail data.

What should I do with my investments?

Black Friday can often bring market volatility with it, which can prove off-putting. More often than not, these fluctuations are short-term, and do not represent the long-term potential of a stock, so it’s essential to remain calm and avoid impulsive decisions. Here’s how our investment managers ensure your investments beat any potential short-term spikes:

  1. Stay informed: Our team of specialists keeps a close eye on retail sales reports to gauge broader market implications.
  2. Diversify: We diversify your portfolio to mitigate risks associated with any single sector.
  3. Avoid panic selling: Market fluctuations are common during this period. We help you avoid hasty decisions based on short-term movements.

Invest for the long term

Black Friday can provide valuable insights into consumer behaviour and market trends, but maintaining a long-term investment perspective enables you to ride out market volatility and benefit from overall growth of the market. Here are some strategies for long-term investing:

  1. Set clear goals: Define your financial goals and develop a plan to achieve them.
  2. Contribute regularly: Consistently contribute to your investment portfolio to take advantage of compounding returns.
  3. Review and adjust: Periodically review your strategy and make necessary adjustments to stay on track.

Work with reputable investment experts

Navigating the stock market can be a challenge. Our experts provide the guidance you need to help you make informed investment decisions.

Why choose us?

  • Expert investment managers: With decades of combined industry expertise, we offer the latest insights and knowledge on fast-changing legislation.
  • Tailored service: We adapt our advice to your needs, delivering a truly personalised service.
  • Clear communication: We keep you fully informed throughout the advice process with regular, jargon-free updates.

Interested?

Our investment managers are on hand to help you to not only protect your wealth, but enhance it. Contact your local investment expert or find out more about Discretionary Fund Management below.

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