PPIACO trade ideas
median home price to median family incomefollowing chart depicts the median home price to median family income using the FRED database. Current house price to income is at historical highs not seen since the end of WW2. The current housing market is one of the most unaffordable markets for the median house hold for the last 70 years.
Rampant Inflation Impacting Producer Price IndexWall Street over the past few weeks appeared to be preparing for a more hawkish Federal Reserve approach to tamp down on sharply rising prices.
The FOMC did raise rates by 25 bps, and the markets promptly responded by going higher. The markets' responses indicate the Fed completely lacks credibility in doing anything to get prices under control... instead the Central Banks have committed to stability and adopting a status quo approach in the near term.
Rationale appears to be mid-term elections and a desire to not "upset" the markets given tremendous uncertainty.
Instead of taking responsible action, it appears that inflation will continue drive higher, and a simple trend reflects PPI raising at least 4% as midterm elections draw closer.
Short-term, markets will continue to behave bullish, inflation will continue to rise, and the depth of a total market correction will be deeper the longer this continues.
Unfortunately, it's apparent that a regime change will be necessary at the Fed... likely resulting from rampant inflation and a landslide Republican win at the polls. High probability the GOP will have control of both chambers of Congress going into 2023.
Commodities - Accumulation in Inflation Expectations ContinuingThe "Price" of the "Things We Need" in Trend is quite clear.
Golden Age of the Inflationary Depression is asserting itself
in a clear, concise, and undeniable Thrush.
GDP has been Mis-Reported by 10 - 30% consistently.
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The Financial Economy has two Halves - one contributes to financing
the real economy, the other does not.
GDP Finance and non-GDP finance.
GDP Finance includes:
Loans for funding real-economic investment and other expenditures
Firm's equity and debt
Taxes
Social Security
Contributions and government bonds to finance public spending
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Non-GDP Finances include:
Inter Alia - Secondary trading in shares, Bonds & Equities
Real estate as Capital Investment
Trading in Derivatives and Forex
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Quantity is not Quality - Inflation is a very real Distortion to
Economic and Financial Well Being.