Things are Lookin’ Up: Up, Up and Away!

Wall Street affects Main Street in many ways these days. A greater percentage of Americans are market-invested than ever before in history, in part thanks to 401K Plans – which, in many cases, have employer matching contributions. For small business, the health of big business is often a predictive factor of success and prosperity; spending by big business trickles down.

So it was good news as we wrote this that, 256 of the S&P 500 companies had reported their 3rd quarter earnings and 70% beat estimates, only 23% came in under their estimates. Overall 3rd quarter growth exceeds 17%, which beats last year’s 14%. The market reflected this, hitting new highs late in October.

The next test of the economy is this holiday shopping season. Retailers enter it hopeful that the near-record low unemployment, nominal inflation, and low interest rates will spur consumers’ spending. In 2005, the average American spent approximately $735.00 on Christmas gifts (according to a retail industry study reported by Associate Press). Trends favoring purchase of luxury goods, electronic items, and home furnishings as holiday gifts could very well push this number higher this year.

How are you capitalizing on these trends?  Take advantage of your prospect’s “buying mindset” this season – especially if you have a “luxury” item that would function as a great gift.  You could even gift wrap it for your customers as a value-added bonus!