As Black Friday is approaching fast, it is highly likely that we may see interesting price action for a number of retail stocks and also technology stocks due to the special offers that are introduced around this event. Starting today, it is highly likely that traders may start to build their positions in companies like Walmart, Amazon, Target, and other similar companies as they will anticipate more favourable prices across their platforms for their merchandise.
Historically speaking, there is an increase in buying as most consumers will wait for Black Friday to come and purchase the things that they desire around this event as companies offer them good discounts. However, traders also need to keep in mind that this year things are a little different. There is not enough disposable earnings among consumers. Higher inflation has made the cost-of-living crisis more difficult for everyone across the world. In a country like the UK where not only consumers are pushed in the corner by higher inflation numbers, soaring interest rates and un-believably high energy prices, the government is set to increase its taxes as well; the enthusiasm around Black Friday may not produce the type of reaction that previously occurred.
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