Inventories to SalesAs Supply of the "Things we need" continues its large drawdowns,
Inflation will continue within the confines of the Inflationary Depression.
Many retailers have signaled BK proceedings are ahead for Q1 2022.
The MIx is Toxic, without question.
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The most recent plunge should be of concern as Supply shortages will continue to
mount as Investment is Non-Existent.
Prices are now rising at the fastest pace in 40 years.%
Coming in under 7% is a Buy.
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Irrational?
Yes, what we've come to expect in the Short Run.
ISRATIO trade ideas
INVENTORY TO SALES RATIO - A RISK INDICATOR TO WATCHInventories to Sales Ratio has been rapidly ascending recently above its usual levels of 1.3. It means that Inventories have been actually growing at a higher pace than Sales over the last several months!
Savvy traders would be interested in watching this ratio as a potential risk indicator of the US economy.
If the ratio continues to ascend at the current phase, it will tell us that a significant fall in business sales is happening, and/or a large excess of inventories is being accumulated in the US economy – both factors are signs of a broader economic slowdown.