Inflation hitting retailers hard

Target and Walmart hit hard with cost increases What good are increased sales when every unit of sales is subject to pressured margins? It’s another manifestation of our antlered friend, the Stag… Ref. from one year ago… Inflation: Going Stag We are already seeing Stagflationary pressure in the above linked ISM report, in Semiconductor supply shortages, in seemingly unavailable labor, in FOOD (as NFTRH has … Continue reading Inflation hitting retailers hard

Beneath the CPI, a little whiff of Stagflation

CPI ramps, but real hourly earnings decline Okay, it’s another ‘Inflation Friday’ as the November CPI ramps (click graphic, get report)… So the headline is the big inflation number. But the sub-headline is the poor real hourly earnings number of -.4%, even as nominal earnings increased. All employees Real average hourly earnings for all employees decreased 0.4 percent from October to November, seasonally adjusted, the … Continue reading Beneath the CPI, a little whiff of Stagflation

When the tight economic rope slackens [w/ edit]

[edit] Upon completing the article I realized that no forward look at the economy and financial markets from an inflationary/deflationary point of view would be complete without consideration of the Yield Curve. Here is its status at the time of writing. It is making a steepening hint this week along with the rise in bond yields. That signaling is inflationary, at least for now. But in … Continue reading When the tight economic rope slackens [w/ edit]

How long before Goldilocks is banished?

Goldilocks today, stagflation or deflation tomorrow? I get to write a post like this with a level of authority simply because NFTRH and possibly this public website were the only two entities that I know of that were talking about a pullback in the inflation trades at the height of the hysteria. The beginnings of our watch for a cool down in long-term yields and … Continue reading How long before Goldilocks is banished?

Inflation: Going Stag

Stagflation in the offing, unless it’s not different this time… As corporations continue to raise wages, market participants fear the Fed is wrong about supposedly “transitory” inflation, long-term Treasury bond yields resume the rally (bonds decline) manufacturers’ (ISM) costs keep rising, the Fed’s inflationary operation – a desperate monetary kick save if ever there was one – labors on. The Fed has manipulated bonds and … Continue reading Inflation: Going Stag

A Decidedly Different Look at the ISM Report on Business

ISM’s Report on Business (RoB) blisters upward, but… My former residence within the real economy was right here, in the manufacturing base. I don’t miss it even one little bit, but were I still involved we’d be booming and bitching. Business would be very good and prices and supply constraints very aggravating. The way things went in my segment – Medical Equipment, often pressured by … Continue reading A Decidedly Different Look at the ISM Report on Business