In a George Costanza kinda way (he often did the exact opposite of what was expected), when I read that market analysts are disappointed, I’m delighted.
When retail sales are flat because “Canadian consumers are keeping a tighter grip on their cash” (Free Press) I say that’s a good thing. After all, the average Canadian household remains “deeply in debt.”
What do you say to yourself when cash-strapped consumers are no longer able to drive the economy in such a way as to meet ever-upward market expectations or please market analysts? Do you say, spend, spend, spend ‘cause Daddy wants a brand new car?
When sales decline or are flat, some analysts say we’re experiencing a “softening trend.”
[“I asked you to dress up, George!”: photo link]
Maybe they use that term because they want or expect the economy to be driven hard all the time.
Or they use that term because sales are “off their pre-recession pace”, and they realize we’re not being as hard on the planet as in the past. (Yeah, right. Insert laugh track here).
Whatever the case, not only do I like the current softening trend, I’d like to see it continue for another 10 to 20 years. A gradual decline in sales (2 - 3% per year) might mean that more people are not just reducing their spending but are paying down debt and saving money for the tough times ahead. Mother Earth might get a decent break too.
To those wise Canadians who are contributing to the flat sales and boosting their savings - keep up the good work. You won’t regret it.
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Hats off to George.
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