Flow Traders Investment Competition: Start of the Holiday Sales

The holidays are coming up and markets took the opportunity to recover from the last two weeks. With Thanksgiving and Black Friday behind us, Cyber Monday coming up and Christmas waiting for us next month, it is time to focus on the internet giants, retailers and restaurants.

Major indices increased last week; the S&P 500 increased 0.96% and the Eurostoxx increased 0.81%. You would expect most Investment Groups to increase as well, but we see that many groups made loss last week. Alpha Investments lost their second spot in the Flow Traders Investment Competition to Midas. Alpha lost almost a percentage of their portfolio last week, as they were not able to benefit from the general market increases. Midas, on the other hand, made a nice return of 0.60% and jumped two spots, just after Borsa Valori. Borsa Valori is maintaining their number 1 spot, the first group this year to do so.

While the top 3 hardly changed, there were major shifts further down. Porto d’Oro, Primus, Gekko Capital and CMG Investments made giant steps in the competition and all entered the top 10. Unfortunately, other groups were not that lucky. CFQ decreased almost 2%, having the biggest loss of the competition so far. ‘Succes is een keuze’ took the last place this week, due to their slow decrease over the last few weeks.

Back to the markets. During this month and December, Americans will spend several hundreds of billions of dollars on gifts for themselves, family and friends. Estimates are saying that there is an increase of 18% in expenditures this year, due to economic growth and better prospects. As a result, Amazon saw its share price increase by 5.3% and Alibaba by 1.7% last week.

Black Friday is mostly seen as an indicator for the remainder of the holiday season. With Christmas coming up, most investors try to predict future store sales, profits and share prices. While Black Friday is mostly important for retail shops, Thanksgiving is mostly important for the restaurants and supermarkets. Last week showed that both segments are in for some nice months, as expenditures rose and profits increased.

To profit from this, you can go for individual stocks, such as Amazon, Alibaba, Wal-Mart, Target, etc. or you can go for ETFs for market wide exposure. The Amplify Online Retail ETF gives you exposure to online sales, while VANECK VECTORS RETAIL ETF gives you exposure to the entire industry. Think you can outsmart the market? Make your investments now and see the result when the Q4 profits are announced!

Written by Paul Hendriks