Monday, April 12, 2010

Frugal Fatigue

I liked the term "Frugal Fatigue" in the article announcing March retail sales on Thursday last week.  I think I was experiencing that last week as I shopped the isles of Sams Club - Frugal Friendly Frontier.  Sometimes the urge to buy overpowers the need - impulse kicks in and retail sales go up.

I think this behavior mirrors the emotional swings of investing in the stock market also.  How long can cash sit on the sideline earning nothing?  All the "talking heads" were predicting a bounce back down as the Dow hit the 11,000 resistance level but March returned a 5.9% increase on the S&P (and April already up 2.1%).  Cash Fatigue is building up even more.

So we buy something - anything to exercise our wallet.



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