People playing the market lately and for the next 3 years, are in denial. The prospects for an economic recovery are very dim, and with virtually no profits coming any time soon. People are not buying houses and they can’t sell them, where housing drives a lot of purchases. With prices of everything being sky-high, people have to be delusional if they think this is a market that has any kind of recovery coming soon.
Inflation is eating away at peoples’ disposable incomes. With costs of all necessities rapidly rising there are fewer and fewer dollars of disposable income left. This will dent consumers’ purchasing power to the point where they are no longer able to spend with abandon.
Whatever purchases they put on plastic are costing them even more in terms of high debt service costs, thereby further reducing their disposable income.
Eventually the weight of inflation on the consumer will impact businesses and sales will inevitably decline.
In the face of slowing economic activity, rising unemployment, and an upcoming election don’t be surprised to see the Fed soften its “resolve” to fight inflation. They are in a box of their own making and don’t have the fortitude to do what needs to be done to control inflation.
An ugly economic scenario is approaching IMO.
The ‘what’s wrong’ list with America is very long! It had to happen.
No Morals. Division, Hate.
Make people like each other. Crowd them all together, like rats and they will eat their own.