Now that Thanksgiving -- or Banksgiving -- is over and done, it's time for two things: leftovers and shopping.
Let's hope those leftovers are tasty, because the holiday shopping season isn't shaping up to be much of a culinary delight. Industry watchers aren't overjoyed at the prospects of consumers digging deep into their pockets this year. The National Retail Federation is projecting a 1% dip in shopping this season. The International Council of Shopping Centers has a mildly more upbeat forecast of a 1% to 2% rise in spending on holiday gifts.
Either way, it's shaping up to be a flat shopping season, which isn't exactly what one would expect coming out of a recession.
Nothing is universal, though. Some retailers will hold up better than others, so investors may want to seek out their inner Peter Lynch and check out where the crowds are headed at the local malls. If you want something more scientific, keep an eye on November comps, which most chains should announce in early December.
Some of the big boys have already placed their bets. Both Berkshire Hathaway's (NYSE: BRK-A) Warren Buffett and fellow billionaire investor George Soros recently raised their stakes in leading discounter Wal-Mart (NYSE: WMT).
Shop the way you invest: discriminatingly, and with an eye for bargains.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Novartis (NYSE: NVS) is paying Incyte (Nasdaq: INCY) to license its most promising treatment for bone marrow disease. The drug is in the final phase of clinical trials. If successful, Novartis' rights would cover sales outside the U.S.
- News Corp. (Nasdaq: NWSA) is exploring a deal with Microsoft (Nasdaq: MSFT) that would make the software giant's Bing the exclusive distributor of digital versions of its newspaper. It's Rupert Murdoch's way to sidestep Google (Nasdaq: GOOG). You can bet that other print media companies will be watching News Corp. as a trial balloon.
Until next week, I remain,
Rick Munarriz
