I don't think we're quite at max pain/bitcoin is dead (again) stage just yet. Still need to shake out the Covid noobs who haven't been through a bear market yet.
The only Govt / central bank solution thus far has been to throw money (they haven’t got) at problems. If the resulting impact of their actions is left to unwind it’s going to be mayhem. Inflation will eventually filter through into company profits (already in the case of BP etc). In the meantime the public sector will threaten strikes whilst others fight for their job as the contraction bites. What will the govt do? Will the home owner with a big debt, leased cars and nothing in the bank get bailed because they can’t afford to fuel them or heat the house? We know consumer confidence is based on house prices. Will the holy grail be thrown aside?
Here’s an interesting article. All this car price nonsense is purely supply driven (a bit like housing). You wonder whether the big boys are now deliberately thwarting supply…
https://www.am-online.com/news/mark...would-be-a-bloodbath-without-supply-shortages
I suppose as it’s a relatively niche but highly profitable product, VW group will allocate the chips etc to bash those out (as long as demand is there) over Golfs etc.
US technology stocks were in a world of their own, this is a re-levellingInteresting how Apple and Microsoft are getting whacked. Some of the largest and most profitable companies in the world
US technology stocks were in a world of their own, this is a re-levelling
Petrol/gas/some food inflation is caused more by Russian invasion of Ukraine. And Covid supply chain/logistics issues.
I don't think it backfired but it went on too long.
Petrol/gas/some food inflation is caused more by Russian invasion of Ukraine. And Covid supply chain/logistics issues.
Petrol and gas inflation are also in part because the oversupply and resulting crash in energy prices during the pandemic forced the energy companies to reduce output, and it takes time to increase the output.
It's also in part because the new Saudi regime, headed by Mohammed bin Salman, that orchestrated the murder of Jamal Khashoggi is not on good terms with the West and is using this opportunity to profit by not increasing output to lower oil prices.
The Russian invasion is certainly not helping, but oil and gas are currently in a perfect storm - I think even without the invasion we'd be seeing high prices.