Thanksgiving is always a good opportunity to take a look at where things are in your life, both personal and financial.
I find that most of the people I talk to around town are beginning to see a light at the end of the tunnel. Certainly, compared with where we were a year ago at this time, the mood is almost euphoric.
For instance, a survey by consulting firm Deloitte finds that 52 percent of people in Southern California expect the economy to improve in 2010. That compares with just 29 percent feeling optimistic at this time last year.
And, the survey found that 47 percent of the people here plan to spend the same or more when they hit the malls and stores Friday for the start of the Christmas shopping season. A year ago only 41 percent felt the same way.
What's interesting is that all of the lagging economic indicators would suggest there is little reason to be optimistic. And, there are many people out there ---- and I get an earful from them regularly ---- who believe anyone who feels positive is a fool.
It's easy to be a Scrooge these days. With the California unemployment rate at 12 percent and possibly heading higher, who wouldn't be a pessimist?
The answer to that question is simple: people who are seeking opportunities to create jobs, save for the future and begin investing see current conditions as an opportunity.
According to TD Ameritrade, 22 percent of people surveyed plan to start an investment portfolio in 2010, compared with just 13 percent last year.
Interestingly, 38 percent of Latinos and 43 percent of blacks are resolved to start investment portfolios.
Retirement savings have been or will become a bigger priority for Americans.
The survey found that 27 percent will increase or begin their participation in 401(k) or other employer-sponsored retirement funds in 2010.
That could prove to be a very smart move. Many employers, trying to reduce costs in the last few years, stopped matching a portion of the contributions made by workers to the plan. Well, Fidelity Investments ---- which manages more than 5,000 retirement plans for companies ---- says that 27 percent of companies that had stopped matching have already reinstated the match or plan to do so next year.
That makes these plans, already the preferred place to invest and save, will become even better.
So, let's combine the spending and saving attitudes of people heading into the holidays. When people hit the stores they will be expecting ---- no, demanding ---- deep discounts and more for their money. In other words, they celebrate the opportunity to buy at lower prices.
That brings up the inherent conflict with investing. Most people would probably say that its stupid to be buying stocks when prices are declining.
Yet, they are probably the same ones that will wait in line early Friday to get the best deals.
Contact George Chamberlin at geoc1045@gmail.com.
