Inside The Consumer Mind Pt. 3 - Cultural Craze


Why do we buy $300 dollar jeans from “that” denim company and $5 dollar lattes from “this” coffee shop, yet turn up our noses at similar items from the “other” store. Fast Money retail analyst Jeff Macke investigates.

It's the deep psychological impulse in the collective brain of the American masses, says Macke. It's the voice that tells us you must have this to be a part of the in crowd. And you'll pay any cost to get it.

“We buy into certain trends because they're aspirational, says CNBC’s Donny Deutsch. “That can be anything that's hitting a nerve because it's where the world is going. We feel better about ourselves for participating. “

What's "IT"

Every year there are one or two “IT” products that capture the cultural wave, adds Macke. Now, how can you spot the next iPod or True Religion jeans before the money's been made? They all have a few things in common, he says, desire, passion, excitement. and they’re hard to get.

So, put on your analyst hat, watch sales figures from month to month and look for news of big orders. Who knows, your next trade could be “IT.”

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“I think the videogame makers are in the sweet- spot right,” now says Jeff Macke. He likes Activision (ATVI), Nintendo (NTDOY) and Gamestop (GME) because he feels the Wii changed the way the console wars will play out.

Karen Finerman prefers Crocs (CROX) because she anticipates more growth to come. At 16 times earnings she thinks this stock is a buy.

Read Other Posts In This Series:

> "Inside The Consumer Mind Pt. 2: Consistency"

> "Inside The Consumer Mind Pt. 1: Relationships"


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Trader disclosure: On Dec. 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO), (ATVI); Pete Najarian Owns (BSC) Options, (COP) Options, (GOOG) Options, (XMSR) Options, (YHOO) Options, (TSL) Options (EMC) Options, (BIDU) Options, Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (BEAS), (BWS), (CROX), (TSO), (YHOO), (NMX), (NYX), (PLCE); Finerman's Firm Is Short (SPY), (IJR), (IYR), (IWM), (MBI); Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (MSFT) Options; GE Is The Parent Company Of CNBC