Producer prices were up 9.6% at annual rate, up 3.6% y/y. Consumer prices are up 1.5% y/y. In other words, prices of materials needed by producer is rising faster than prices charged by producers.If the input costs for a company are rising more than the prices it gets at final sale, it is squeezing earnings. Is the market ingoring it?
Investing decisions, in my humble opinion, have to be made on what is happening now. We know one day profits will slow down or decline. We know one day short-term interest rates will rise. We know one day inflation will rise. We know one day the Fed will start tightening.
But this is not what is happenng now.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site.
No comments:
Post a Comment