Sponsored Link: Legally "Eavesdrop" on this Private Gathering of Top Technology CEOs

Will Frugality Remain?

Alexander Wissel, Editor in Chief, Investment U

We’ve heard how over the past few months Americans have closed their wallets and started saving more. The national savings rate has climbed for the first time in decades.

This newfound zeal for saving money has been a boon for many companies that help consumers save or cut back. Companies like Netflix (Nasdaq: NFLX), Rewards Network (Nasdaq: DINE) and Wal-Mart Stores (NYSE: WMT) have thrived on cost conscious consumers.

The question is how long can this last?

The latest reports from Gallup have noted a trend for consumers spending less. But are the cost cutbacks voluntary or forced. Consumers cutting back to be frugal is quite different from bargain shopping because you have to.

Time will tell if this newfound frugality will remain. But if history shows us anything from the dot.com blowup and mortgage fueled resurgence, our return to careless spending is right around the corner.

Regardless of when it ends, the longer this mindset lasts the better it will be for Dollar Tree (Nasdaq: DLTR) Big Lots (NYSE: BIG) and Family Dollar (NYSE: FDO).

Symbols mentioned in this article: NFLX, DINE, WMT, DLTR, BIG and FDO.

More on this topic (What's this?)
Wal-Mart Has Gone Shopping
Dividends and Stock Buybacks in the news
Wal-Mart Stores, Inc. (WMT) Stock Analysis
Read more on Wal-Mart, Rewards Network, Netflix at Wikinvest
Related Investment U Articles:

Sign Up now and receive this Free report:

Collect 122% in the Next 12 Months From Gold's Surge.




Could you use an extra $600 - or more - each month?

If so, you’ll want to check out the details of an overlooked government-backed program in THIS REPORT.

It shows you why the government is set to distribute $457 million to a small group of recipients, how to get your name on the list and the exact deadline you must meet in order to qualify.

Share Investment U:
  • email
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Propeller
  • StumbleUpon
  • Technorati
  • Yahoo! Buzz
  • Reddit
  • NewsVine
  • SphereIt
  • Twitter

Comments

**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.

Check out our selection of daily Investment Research:

IU Blackboard IU Archives




We Respect Your Privacy



What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.



Recent Articles

 

Search Investment U


 

Platinum Services

Oxford Club
The Oxford Club
is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

White Cap The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

XPR With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.




What Readers Are Saying...

"Always enjoy what you have to say, and learn something new (and useful) almost every time. Thanks again for your outstanding work." Jeff K.

"I just want to say a quick thank you to Alexander Green for not only his sage advise, but his reassuring words of encouragement that we all need right now." Bryan W.