Financial Services and International Women’s Day 2025

The Indian stock market declined for five straight months from October 2024 to February 2025. This was the second instance since the 1990s of pessimism weighing on Indian stocks for such a long time. By March 3, 2025, the NIFTY 50 had lost over 4,000 (15.6%) points from a peak of 26,216 in September 2024. The BSE SENSEX accompanied the benchmark index by shedding over 12,700 points (14.9%). If we zoom in a bit, both indices had declined almost 7% YTD by the beginning of March, taking a hit of over 5% in February 2025 alone.So, what’s plaguing the stock market of the world’s fifth largest and fastest growing major economy?Bleak Outlook for the Banking SectorThe Indian banking sector has been witnessing a dry season. After the disappointing Q3, the Q4 results further weakened investor confidence. The banking sector is under pressure due to sluggish interest earnings growth, which slowed by 7.2% y-o-y in Q3 . The demand for credit has been declining ever since the Reserve Bank of India’s (RBI, India’s central bank) raised borrowing costs. Plus, regulatory changes and tight liquidity are narrowing operating margins. Notably, this sector forms 30% of the NIFTY 50. The loss of investor confidence is evident in BANKNIFTY, the index that tracks the Indian banking sector’s performance. BANKNIFTY had plummeted 5.3% year-to-date by March 3, 2025.Talk to our team about analysis for your finance brandTrump Tariffs Threaten TradeThe second-time US President announced retaliatory tariffs on steel, aluminium and their derivatives. Consequently, most capital flowed out of small- and mid-cap telecommunications and IT stocks as well as metals and automobiles. Further weighing on the stock market, the February 11, 2025, announcement dragged the NIFTY 50 down 4.4% within three weeks.However, the latest tariff could only be a move to arm-twist India (and many other nations) into cutting back on import duties. Or, shall we say, facilitating Trump’s America First agenda? India and the US plan to take bilateral trade to $500 billion by 2030[E3] . In 2024, the US had a trade deficit of $45.7 billion with India, meaning America imported $45.7 billion more in goods from India than it exported there.Notably, the US is India’s largest export partner, accounting for nearly one-fifth of the latter’s export income. The tariff tantrum could dent Indian export income by $7 billion a year. On March 3, 2025, the Indian Trade Minister was on route to meeting Trump and negotiating the terms of goods exchange.Source: CNN BusinessFIIs Exit While DIIs Exercise CautionMassive withdrawals from foreign institutional investors (FII) are the primary cause of the Indian stock market’s crash. FIIs offloaded over ₹46,000 crores in the last week of February 2025, which raised the total withdrawal since the beginning of the year to ₹1.33 lakh crores. The primary reason for FIIs selling is that the Indian rupee has declined 1.42% YTD. Most often, when foreign investors exit, domestic institutional investors (DII) take over and support the markets. However, DIIs are currently holding significantly large positions, and declining markets do not present profitable opportunities. Given the uncertainty surrounding the global and domestic markets, the caution seems justified.But Where’s the Investment Going?Given the level of global uncertainty and President Trump announcing that the tariffs against Canada, Mexico and China will be enforced, the US markets ended the last week of February in the red. Investors are frantically searching for a “safer” haven, given that the performance of the USD remains uncertain. The Indian retail investor is exiting equities and probably still struggling to find a reliable alternative avenue of investment. This is because even gold and silver, the two most trusted instruments of the Indian market, are also under pressure.The surprising twist is that millions of dollars that flowed out of the Indian equity market haven’t landed where expected. Notably, the S&P 500 declined 0.67% through February 2025, while the NASDAQ plummeted 2.81% and the DXY only surged modestly. This means the safe haven dollar isn’t the go-to investment either. To top it all, BTC ended February 1.15% lower. So, capital isn’t (necessarily) flowing into the US or potentially high-yielding cryptocurrencies. Here’s what global investors could be chasing:The Japanese yen (JPY) had surged 6.01% YTD while the Swiss franc (CHF) appreciated 2.07% YTD against the US dollar by March 4, 2025.So, what is the Indian investor supposed to do?Time to Exit the Indian Markets?We don’t think so! And most Indian stock market analysts would agree. Indian indices are widely expected to be under correction. The 22,000 level is a known support level for the benchmark index NIFTY 50 that has taken a U-turn from the key level several times in the past. Since the elections in 2024, the stock market was under the Modi euphoria, and most equities were overvalued when Trump’s tariffs speed-bumped the momentum.The good news for the Indian markets is that the sell-off is primarily technical and not driven by macro-level fundamental weaknesses. This means that as the markets absorb the latest US-Indian trade developments, the USD surges, and the earnings of other industries unfold, at least the domestic investor could take a sigh of relief.The MSCI Global Standard Index rebalancing concluded on February 28, 2025. A total of 14 stocks have been affected. The weightage of eight stocks has been increased while that of four has been reduced, and one replaced. India’s weightage in the index has risen from 18.8% to 19%, although it is still at the third spot. The rejig is expected to drive nearly $1 billion into the Indian equity market. The MSCI has also released the date for three more Index Reviews in 2025, which will continue to impact the Indian equity markets.All in all, the Indian economy is growing on strong fundamentals, and the third-time Prime Minister’s “Make India Great Again” vision is expected to pull the stock market out of its slump by Q2 CY2025. However, it is crucial that global geopolitical tensions do not stir a stronger sell-off. Some market veterans believe it is time to buy the dip for Indian retail investors.At Contentworks, we are passionate about following the global markets to provide insightful daily analysis to brokers across the world. Speak to us about how we can support your traders with market news.

Valentine’s Day offers brands a prime opportunity to connect with audiences through creative marketing. But… some campaigns have missed the mark, leading to public backlash. Here are some of our favourite Valentine’s Day marketing fails to enjoy.#1 Card Factory’s ‘Work Husband’ Valentine’s Day CardWhat Happened: Card Factory, a UK-based retailer, released a Valentine’s Day card addressed to a “Work Husband.” The card sparked outrage among shoppers who found it disrespectful and inappropriate, fearing it could cause trouble in real relationships.What Went Wrong: The card was perceived as trivialising real relationships and promoting potentially problematic workplace dynamics.What They Should Have Done: Conducted market research to understand customer sensitivities and avoided themes that could be interpreted as undermining personal relationships.#2 Delta and Coca-Cola’s In-Flight Napkin CampaignWhat Happened: Delta Air Lines and Coca-Cola partnered on in-flight napkins encouraging passengers to write their phone numbers to pass on to their “plane crush.” The campaign was intended to spark connections but was criticised for promoting unsolicited advances. Can we just say… brother eurghhhhhhhhh.What Went Wrong: In an era of heightened awareness around consent and personal boundaries, the campaign was seen as tone-deaf and invasive.What They Should Have Done: Prioritised passenger comfort by avoiding promotions that could lead to unwanted interactions, focusing instead on universally positive messages. Widen their focus group to a wider section of the target audience. Do solo women travellers want napkins from random men on planes? We’re going with no.#3 Woolworths’ Gender-Stereotyped Valentine’s Day AdvertisementWhat Happened: South African retailer Woolworths released a Valentine’s Day advertisement that was criticised for perpetuating gender stereotypes, leading to social media outrage. We found it a bit lengthy to be impactful or offensive but maybe that’s just us!What Went Wrong: The advertisement tried to be funny but instead, reinforced outdated gender roles, alienating a segment of their customer base seeking more progressive representations.What They Should Have Done: Embraced inclusive and diverse portrayals in their marketing to resonate with a broader audience and reflect modern societal values.#4 Pizza Hut’s $10,010 Engagement PackageWhat Happened: Pizza Hut offered a $10,010 engagement package, including a ruby ring, limo service, fireworks, and a $10 pizza dinner box which contains “a medium one-topping rectangular pan pizza, five breadsticks with marinara sauce and 10 cinnamon sticks with a sweet icing cup in one box. The promotion was widely mocked for its perceived tackiness.What Went Wrong: The juxtaposition of luxury items with a low-cost pizza dinner was seen as inauthentic, failing to appeal to either luxury seekers or budget-conscious consumers.What They Should Have Done: Aligned the promotion with their brand identity by offering experiences that authentically combine their product with romantic gestures, such as a special Valentine’s Day menu or themed dining experience. Just don’t do the heart shaped pizzas, it’s less pizza for us to enjoy!#5 Bronx Zoo’s ‘Name a Roach’ CampaignWhat Happened: The Bronx Zoo launched a campaign allowing people to name a Madagascar hissing cockroach after a loved one for Valentine’s Day. While intended as a quirky gift, it was met with mixed reactions.What Went Wrong: The association of a cockroach with affection did not resonate with many consumers, leading to confusion and distaste.What They Should Have Done: Chosen an animal or symbol more universally associated with positive qualities to ensure broader appeal and alignment with the sentiment of Valentine’s Day. Or… name a roach after an ex instead! In recent years, the greater public has gobbled up events dedicated to ex-lover-induced rages. One of those events is San Antonio’s Zoo’s annual “Cry Me a Cockroach” fundraiser. The Texas-based tradition makes donating to the organisation a little more fun by enabling the angry or heartbroken person to name a roach, rat or veggie after their ex. It will then be fed to a hungry animal. Not gonna lie, we love this one!What’s the best, worst or funniest Valentine’s marketing campaign you’ve seen? Comment below and share it with us.

RedNote, known as Xiaohongshu (小红书), is a Chinese social media and e-commerce platform that blends elements of Instagram and Pinterest. So, let’s cut to the chase. Why are we talking about RedNote? On the heels of TikTok’s looming shutdown on January 19, American users are flocking to Xiaohongshu (known as RedNote in English). The app surged to the №1 spot for free apps on the U.S. App Store. It is also the top Social Networking app across all free iPhone apps.What is RedNote / Red Book?The RedNote platform was launched in 2013, and its Chinese name translates to “Little Red Book.” The Little Red Book was put out by the military newspaper of the People’s Republic of China from April 1964 until about 1976. The Little Red Book (official title Quotations from Chairman Mao Zedong Chinese: 毛主席语录; pinyin: Máo zhǔxí yǔlù) is a book of the sayings of Mao Zedong. The preface written by Lin Biao is a collection of quotes taken from Mao Zedong’s speeches and books. It’s said that the naming convention by founders Miranda Qu and Charlwin Mao was intended to be ironic!TikTok RefugeesThe surge in new RedNote users has been significant, with reports indicating that over 700,000 American users have joined, referring to themselves as “TikTok refugees.” This influx has prompted RedNote to expedite the development of content moderation and translation tools to better serve its expanding user base.What Does RedNote Do?The platform allows users to share and discover lifestyle content, including beauty, fashion, travel, and food. It supports a mixed-media interface where users can post photos, videos, and text, fostering a community-driven space for recommendations and discussions. Additionally, RedNote integrates e-commerce features, enabling users to purchase products directly through the app. RedNote primarily operates in Mandarin, catering to a predominantly Chinese-speaking user base. However, with the recent influx of international users, particularly from the United States, the platform is developing English tools.The platform employs an algorithmic feed that curates content based on user interests, emphasising authentic user-generated content over influencer-driven posts. This approach encourages organic engagement and community building among users with shared interests.Top Brands Using RedNoteNotable brands utilising RedNote’s platform include:SulwhasooThis high-end Korean cosmetics brand was identified as the most influential cosmetic brand on Xiaohongshu as of May 2024, achieving a brand index score of 93.67 out of 100.Colorkey, Proya, and FlortteThese budget-friendly domestic cosmetic brands also ranked among the top ten on the platform, indicating strong local brand performance.KotexIn the personal care sector, Kotex was identified as the most influential brand on Xiaohongshu as of May 2024, with a score of 94.72 out of 100.L’Oréal Pro and LotionThese brands followed closely in the personal care category, demonstrating significant influence on the platform.Off-White and Sergio RossiThese luxury brands have engaged with Xiaohongshu to discuss digital innovation and luxury lifestyle strategies, indicating their interest in the platform’s potential for reaching Chinese consumers.Procter & Gamble (P&G)P&G has intensified its marketing efforts on Xiaohongshu, to promote products like Pantene shampoo, aiming to reverse sales slumps and adapt to Chinese consumers’ preference for online shopping.These brands utilise RedNote’s unique combination of user-generated content and integrated e-commerce to connect with consumers, promote products, and drive sales within the Chinese market.What Your Brand Should Know Before Signing Up To RedNoteBefore signing up to RedNote, brands should understand that the platform thrives on authenticity and community-driven engagement. Users value genuine recommendations and peer-to-peer sharing over overt advertising, so brands need to craft relatable, user-focused content.RedNote has the same look and feel as TikTok, but the two platforms are different. Understanding the platform’s audience is essential, as RedNote primarily caters to Chinese-speaking users with a strong preference for lifestyle, beauty, fashion, and travel content.Additionally, integrating e-commerce capabilities into your strategy is crucial since RedNote allows seamless shopping experiences directly within the app. Brands must also navigate potential challenges, such as adhering to Chinese regulatory requirements and ensuring culturally relevant content.Is it a substitute for TikTok? No. Should brands jump onto the platform? We always encourage brands to check out new platforms. But considering if the platform is a fit for your demographics is key. Additionally, consider if you have the resources (language especially) to succeed on the platform before incorporating it into your strategy. If you’re using TikTok from the USA to target the rest of the world, you can always utilise a VPN to continue marketing should the TikTok ban go ahead.Have you opened a RedNote account? Comment below and tell us about it.

Squid Game Season 2 has hit Netflix, we’re already finished and contemplating watching everything from the start! Here’s a tongue-in-cheek look at how the chaos of this sensational Netflix series draws parallels with the world of marketing. And rest assured, there are no spoilers in this article. We’re good people, but avoid #SquidGame2 on Reddit or you will certainly find some!#1 The Power of the HookRemember the first episode of Squid Game? Ordinary people thrown into a high-stakes death match. Bam! Intrigue! Your marketing campaign needs that same level of hook. You’re not throwing customers into a literal death match (we hope), but your headline, tagline, or opening ad scene should be bold, intriguing, and leave people begging for more.#2 Simplicity WinsGreen light. Red light. That’s it. The concept is eerily simple but terrifyingly effective. Similarly, the best marketing campaigns aren’t convoluted. Think “Just Do It” or “Got Milk?” Easy to remember. Impossible to ignore. Remember this when writing your CTA (Call to Action). Are you saying stop, go, or confusing people with a ton of waffle?#3 Know Your Audience. Like, Really Know ThemThe Squid Game organisers knew their “customers” inside out. Crippling debt? Check. Desperation? Double check. They didn’t sell a game; they sold hope wrapped in neon lights and existential dread. When marketing your product, dig deep into your audience’s psyche. What keeps them awake at night? What’s their “I’ll do anything for this”? Understanding what makes your audience tick is the beginning of a great content marketing strategy. You can chat to us about your 2025 strategy here.#4 Leverage FOMO Like a ProRemember that golden lit piggy bank that dangles potential prize money over their heads, even as the contestants sleep? They won’t leave the game when they know they might miss out on all that shiny money. The fear of missing out on a life-changing win pulled them in. Marketing thrives on that principle too. Limited time offers, exclusive deals, or a countdown timer can create that same tension. Make customers feel like they’ll regret not acting now. And remember to take away the offer when it expires. Next time they’ll act faster. Cue evil marketing plan laughter. A little well-placed scarcity is marketing gold. Just don’t overdo it, or you’ll look desperate.#5 The Devil’s in the DetailsThe Squid Game set design was a fever dream of bright colours and childhood nostalgia that masks sheer horror. Your campaign needs that level of attention to detail. Think visuals, tone, and brand consistency. Everything should scream you while subtly leading your audience to the CTA. We’re not suggesting you terrify your customers into submission. But we are saying that the customer journey should be on-brand and consistent.#6 Surprise and Delight… or Shock and AweNo one saw that betrayal in season 1 coming did they. Or the many other gut-wrenching twists and turns of both seasons. Squid Game thrives on jaw-dropping surprises. Your marketing doesn’t need to be as deadly, but a well-placed twist can keep your audience engaged. Whether it’s a surprise discount, an Easter egg in your content, or unexpected campaign pivot, keep your audience guessing and coming back for more. The same goes for adding fresh content on your website and social media channels. Letting things get stale is a sure-fire way to lose engagement.#7 Don’t Forget the Human ElementAt its core, Squid Game is about human struggle, connection, and choices. It’s about connecting with the characters, whether you like them or not. No matter how polished your marketing campaign is, it needs that connection. Authenticity, storytelling, and relatability make your brand more than just a product. They make it human. If your marketing doesn’t make someone feel something, it’s just noise. Utilise UGC (user generated content), employee advocacy and thought leadership to build an authentic connection with your audience. Not sure where to start? Book a free Zoom call with our team.Are You the Player or the Organiser?In Squid Game, you’re either the one scrambling to survive or the one orchestrating the game. In marketing, you should aim to be the organiser. In control and always a step ahead. So, grab your green tracksuit (metaphorically speaking), dive into the game, and leave your audience gasping for breath.* Disclaimer: To our knowledge, no clients have been harmed by our marketing.

As a marketing agency it goes without saying that we’re publishing “serious” marketing predictions for 2025 over at our content bar. But we can’t be serious all the time. Especially in the run up to Christmas. So, in this article we present, 7 of the wildest marketing predictions for 2025. Disclaimer, if any of these come true we’re sorry!#1 AI Overlords Become InfluencersChatbots and AI personalities will replace influencers, with viral posts like, “This outfit was designed by my neural network. Slay or nay?” AI will dominate platforms with perfect algorithms, leaving humans scrambling for engagement crumbs. Sponsored posts by ChatGPT coming soon!#2 Product Placement in DreamsMarketers will crack the “lucid dream” market, injecting product placements directly into REM cycles. Waking up thirsty? It’s because Pepsi just ran an ad in your dreams. Freud would be proud and everyone who watched the Matrix would feel red pilled.#3 Pets as Micro-InfluencersNow this is already becoming a thing, Our director Charlotte has already been offered merch deals for her one eyed cat! But think dogs with GoPros and cats wearing VR headsets driving campaigns. Forget about Kim.K. Your goldfish now has a sponsorship with Apple and your hamster is the face of Dominos Pizza. As a bonus, pets already rule the internet so your engagement will be stellar.#4 Subscription Services for EverythingEverything from toothpaste to toilet paper becomes a subscription. Pay $9.99/month for “Monday Motivation Quotes” delivered by hologram, or $29.99/month for “Premium Air” in urban centers. Cancellation policies? Nope, you’re locked in for life… evil plan laugh. U.S. consumers spend a whopping $273 per month on all types of subscriptions, including streaming services, mobile phone plans, and Wi-Fi so this one perhaps isn’t so wild after all!#5 Viral Apocalypse-Inspired MarketingYou’re already familiar with the impact of empty shelves. Quick! Run to the supermarket to stock up! Well now, post-apocalyptic aesthetics will trend, with brands selling “limited edition” doomsday survival kits. Gucci will release high-fashion gas masks, and Starbucks will introduce Post-Apocalypse Roast, Brewed for Survival. And of course, Balenciaga… well they’re already weird aren’t they.#6 Social Media Platforms That Disappear DailySnapchat will evolve into “Snap Life,” and Facebook into “Fadebook”. Platforms where everything disappears after 24 hours — including your followers. Want to go viral? Better hustle, because tomorrow, you’re starting over. Social media engagement at an all time high? Enjoy it because tomorrow you’re nobody. It’s giving a fresh take to social media in 2025 and we’re ready for it.#7 The Rise of the Sentient BillboardBillboards equipped with AI and facial recognition will talk to pedestrians. “Hey, Sarah! Buy these shoes girl, they’ll help you get over your breakup!” Oh and they communicate with all the other billboards and can then retarget you across every single digital device you own including your coffee machine. Slay.Which one of these predictions do you think could actually happen in 2025? Drop your comment below!

The Trump / Musk Bromance — What Markets Should Watch Out ForAs Donald Trump returns to the presidency in 2025, markets are preparing for notable shifts across various sectors, including stocks, forex and cryptocurrencies. But what about the Musk factor? The incoming president and the world’s richest man have remained seemingly inseparable in recent weeks as Musk has sat in on calls with world leaders, joined Trump and his family members for meals, and is a constant presence as the president-elect charts out his second administration. Our team will be following the shifts closely and here are some of our initial predictions for the financial markets.The friendship has paved the way for some viral AI generated TikToks and memes:What Donald Trump Might DoTrump may adopt a business-friendly stance with Musk as an ally. Policy shifts could include deregulating AI and cryptocurrencies, potentially boosting tech and financial marketsTrump may prioritise AI-driven national security measures and further investment in space exploration, aligning with Musk’s interests. These policies would enhance the U.S.’s competitive edge against global rivals.The stock market historically performed strongly during Trump’s first term, with the S&P 500 rising by 70% due to corporate tax cuts and deregulation. Analysts expect a similar short-term boost, with projections for another rally driven by potential tax reforms and infrastructure spending.Trump’s stance on trade and potential tariff wars could lead to fluctuations in the U.S. dollar. A protectionist agenda, if renewed, might weaken the dollar against other major currencies. However, a strong push for domestic economic growth might counteract this by attracting foreign investment. Forex traders are closely watching these dynamics as Trump’s policies unfold. As is our team!JPMorgan anticipates significant gains for Bitcoin, tied to what it calls the “debasement trade.” Trump’s fiscal expansion and geopolitical tensions are expected to boost Bitcoin and gold as safe-haven assets. Bitcoin’s recent upward momentum following his election victory reflects investor confidence in these predictions. This trend aligns with increased central bank gold purchases, which may also bolster the broader crypto marketWhile markets could benefit from a business-friendly agenda, risks include inflation from deficit spending and potential geopolitical disruptions. Predictions about Elon Musk and Donald Trump in 2025 involve significant developments in technology, policy, and business.Image source“Elon Musk and President Trump are great friends and brilliant leaders working together to Make America Great Again. Elon Musk is a once in a generation businessman and our federal bureaucracy will certainly benefit from his ideas and efficiency.” said Karoline Leavitt, Trump-Vance transition spokesperson.What Elon Musk Might DoPresident-elect Donald Trump and Elon Musk have big ambitions for making the federal government leaner and more efficient by reviewing its budget and operations from top to bottom. Musk has warned that his goals include cutting at least $2 trillion in federal spending, partly by axing inefficient federal workers.Musk’s ambitions for Mars colonisation through SpaceX continue, with potential support from a Trump administration favouring deregulation. This could accelerate missions under NASA’s Artemis program, which SpaceX heavily supports.President-elect Donald Trump listens as Elon Musk explains the operations ahead of the launch of the sixth test flight of the SpaceX Starship rocket. photo by Brandon BellHe also envisions a future driven by AI and robotics, proposing advancements in autonomous vehicles and humanoid robots to reshape industries. These technologies could face fewer regulatory hurdles if pro-tech policies under Trump prevail.Tesla could see short-term stock rallies if Trump reintroduces lenient regulations and protects EV manufacturing from foreign competition. However, Musk’s involvement in policy could lead to mixed market reactions over time.Potential ChallengesCritics warn that Trump’s tendency for administrative unpredictability and Musk’s controversial and often volatile leadership style could create volatility. Concerns about policy execution, market reactions, and societal readiness for such rapid changes could temper the optimism surrounding their visions.Both figures are positioned to influence transformative changes, with their partnership potentially shaping technology, governance, and global markets. And both have a captive audience. With 611 million active monthly users on X (Formerly Twitter) for Musk, and the world stage for Trump as president, we should expect to see some interesting developments next year.A great alliance that will benefit the economy, or a disaster waiting to happen? Comment below and tell us what you think. For expert financial marketing, book a free Zoom call with our team.

When you hear Thanksgiving Holiday, what do you think? Probably Turkey, pumpkin pie, dinners with friends and family and a Thanksgiving parade. But as one of the most celebrated holidays in the United States, Thanksgiving has traditionally influenced market trends, consumer spending patterns, and investor sentiment. Our team is looking at how Thanksgiving impacts the stock market, key historical trends, and the statistics behind this holiday’s financial influence.#1 Historical Thanksgiving Stock Market TrendsThanksgiving, observed on the fourth Thursday of November, has a unique effect on the stock market due to its timing. Several historical patterns have emerged over time:Pre-Holiday Optimism (Thanksgiving Rally)Investors often feel optimistic ahead of Thanksgiving, resulting in what’s sometimes referred to as the “Thanksgiving Rally.” This trend mirrors a broader phenomenon where stocks tend to perform well before major holidays. According to research by Yale Hirsch, stocks perform above average in the days leading up to holidays, a pattern that has held for Thanksgiving as well as Christmas and New Year’s.Friday Gains — The Black Friday EffectThe day after Thanksgiving, known as Black Friday, marks the beginning of the holiday shopping season and historically records above-average trading volumes. Not only are investors watching retail stocks more closely, but the optimism from consumer spending expectations often leads to market gains. For instance, the S&P 500 has historically seen an average return of 0.3% on the trading day following Thanksgiving.The Thanksgiving Week EffectThe short trading week, often marked by lighter trading volume, has resulted in an average upward trend. Data from MarketWatch indicates that the S&P 500 has delivered gains approximately 70% of the time during Thanksgiving week, with an average increase of about 0.5%.Historical ExampleDuring the recovery from the 2008 financial crisis, Thanksgiving week in 2008 saw a significant positive shift. Following the Federal Reserve’s interventions, the Dow Jones Industrial Average gained 9.7% during Thanksgiving week, as investors anticipated stabilisation in the market and an increase in consumer spending for the holidays. This optimism, although short-lived, became a marker of how Thanksgiving rallies can provide a morale boost in challenging times.#2 Black Friday and Consumer Spending Is A Market DriverThanksgiving weekend is synonymous with Black Friday, which kicks off a massive spending surge. For investors, Black Friday data is crucial as it provides a real-time barometer of consumer sentiment, which can then influence stock prices in retail and related sectors.Black FridayAccording to the National Retail Federation (NRF), U.S. consumers spent $9 billion on Black Friday in 2022, up from $8.9 billion the previous year. This high spending figure has significant implications for retail stocks. Retail giants like Walmart, Target, and Amazon often experience a bump in stock prices based on favorable sales forecasts and spending data.Cyber MondayIn recent years, Cyber Monday (the Monday after Thanksgiving) has extended the weekend shopping spree into the digital realm. For example, in 2021, Cyber Monday sales reached $10.7 billion, according to Adobe Analytics. This shift in consumer behaviour has driven stocks of e-commerce giants like Amazon, Shopify, and even logistics firms like FedEx and UPS, which see increased demand.Market IndicatorsBlack Friday and Cyber Monday spending often serve as indicators for the overall holiday shopping season. If consumer spending is strong, it often signals investor confidence that GDP and consumer sentiment will be positive for the quarter, driving up stock prices. Conversely, weak Black Friday or Cyber Monday sales can lead to downward pressure on retail stocks as investors adjust expectations.#3 Volatility and Liquidity Concerns During Thanksgiving WeekWhile Thanksgiving week is typically marked by positive momentum, it also experiences reduced trading volumes. The U.S. markets close early on the Friday following Thanksgiving, resulting in less trading time. Additionally, many institutional investors and traders take time off, leading to lower-than-usual liquidity.Impact of Lower LiquidityLower liquidity can lead to increased market volatility, as even relatively small trades can have a larger impact on stock prices. Historically, smaller stocks and certain sectors (like technology and consumer discretionary) are more volatile during this time, which can offer both risks and opportunities for investors.Statistics on Reduced VolumeThanksgiving week has consistently shown trading volumes that are 25–30% lower than average weekly volumes. In 2022, for example, the average daily trading volume on the NYSE during Thanksgiving week was around 3 billion shares, compared to a monthly average of 3.9 billion shares, indicating the impact of the holiday on trading behaviour.#4 Thanksgiving’s Impact on Investor Sentiment and the Santa Claus RallyThe Thanksgiving period sets the tone for the “Santa Claus Rally,” a phenomenon where the stock market experiences a strong finish to the year in December. Thanksgiving provides initial data on consumer confidence, retail sales, and other economic indicators that investors use to gauge whether a year-end rally is likely.The Santa Claus Rally ConnectionAccording to data from Bank of America, the S&P 500 has delivered average gains of 1.3% in the last five trading days of December and the first two of January, historically known as the Santa Claus Rally. This performance is often attributed to optimism around consumer spending, year-end financial manoeuvres by institutional investors, and holiday bonuses driving increased investing.Thanksgiving week in 2020, retail stocks and tech giants saw an increase in stock prices as consumer spending remained strong despite covid19. This set the stage for a 3.7% increase in the S&P 500 in December 2020, marking one of the more pronounced Santa Claus rallies in recent years.#5 Investment Strategies Around ThanksgivingGiven the historical trends, some investors employ strategies specifically timed for Thanksgiving and the holiday season. Here are two common approaches:Seasonal Stock PickingInvestors often focus on retail and consumer discretionary stocks leading up to Thanksgiving. Companies like Amazon, Walmart, Target, and even Disney (due to holiday movie releases) are some stocks that tend to receive higher trading volumes and price appreciation around Thanksgiving.Short-Term Options TradingDue to the increased volatility and positive price trends during Thanksgiving week, short-term traders may consider options trading strategies like call options on retail stocks. Leveraging these trends, options traders can potentially benefit from quick gains while managing the risk through limited duration.Whether it’s the positive momentum in the lead-up to Thanksgiving, the Black Friday consumer spending rush, or the lighter liquidity that adds a touch of volatility, Thanksgiving remains a significant period for both investors and analysts.We will be covering all of this for our finance clients with daily analysis, blogs, social media and email marketing. Book a free call with our team to talk about your financial marketing.

Halloween is synonymous with costumes, candy, and spooky stories. But that’s not all. Over the years, October 31 has also been a day of significant financial events. From stock market crashes to major corporate moves, Halloween has left its mark on the world of finance in some weird ways. These are spooky, especially #5.1. Halloween Massacre of 2006 — Canada’s Income Trust ChangesOn October 31, 2006, the Canadian government, led by Prime Minister Stephen Harper, announced a sudden policy shift that would tax income trusts, effectively ending their tax-advantaged status. Before this change, income trusts were popular with investors because they allowed corporations to avoid corporate income taxes, distributing profits directly to investors. This Halloween surprise wiped billions off the value of trusts, and the day became known as the “Halloween Massacre” in Canadian financial history.2. The Beginning of the End for Lehman Brothers (2007)One year before the global financial crisis reached its peak, on Halloween in 2007, Lehman Brothers reported significant losses from its mortgage-related assets. Although the firm hadn’t yet collapsed, these early signs of trouble foreshadowed the catastrophic events of 2008. By September 2008, Lehman Brothers filed for the largest bankruptcy in U.S. history, triggering a domino effect that led to the financial crisis.3. Japan’s Bank of Tokyo-Mitsubishi Merger (1995)On October 31, 1995, two of Japan’s largest banks, the Bank of Tokyo and Mitsubishi Bank, announced a merger that created the Bank of Tokyo-Mitsubishi, which at the time became the world’s largest bank by assets. This move was part of Japan’s broader efforts to deal with its own financial challenges in the 1990s, following the collapse of the country’s asset price bubble.4. Brexit Reboot: Bank of England Rate Cut Signals (2019)On Halloween in 2019, the Bank of England made headlines by hinting at a potential interest rate cut, depending on the economic impact of Brexit. With the UK set to leave the European Union, the uncertainty had affected markets and currency exchange rates. Although Brexit was ultimately delayed until early 2020, this Halloween event reflected the mounting financial anxieties in the run-up to the historic exit.5. The New York Stock Exchange Plunge of 1929Though the infamous “Black Tuesday” occurred on October 29, 1929, Halloween that year witnessed the aftermath of the Great Crash as panic spread through global markets. The New York Stock Exchange remained chaotic throughout the week, with massive sell-offs continuing as investors scrambled to protect their assets. The Halloween aftermath solidified the start of the Great Depression, one of the darkest periods in financial history.6. The End of the Bretton Woods System (1971)Halloween 1971 marked a pivotal moment in international finance as the U.S. formally abandoned the Bretton Woods system of fixed exchange rates, following President Nixon’s decision earlier that year to suspend the dollar’s convertibility into gold. The dollar began floating freely against other currencies, and this shift ultimately transformed global foreign exchange markets. This move is seen as the dawn of the modern era of floating exchange rates.7. GM’s Second Bankruptcy Rumours (2013)On October 31, 2013, General Motors (GM) was battling rumours of a second potential bankruptcy following its 2009 collapse and subsequent government bailout. The rumours caused GM’s stock to drop and sparked discussions about the company’s long-term viability. Although GM managed to survive, the Halloween scare underscored the fragile state of the American auto industry during the recovery period.While Halloween is often associated with ghost stories and horror films, it has also proven to be a significant date in financial history. From stock market plunges to strategic corporate acquisitions, October 31 has witnessed events that shaped economies, industries, and markets.Coincidence or something spookier? Leave your comments below and Happy Halloween!