Fed rate increase = lower hifi prices?


Will the recent rate hike meant to slow down the economy result in lower hifi prices?  Seems everything shot up during Covid. Will we now see some relief?

128x128bigtex22

Demand stops them. It’s always about demand and supply. Yes, prices do come down. The housing market has been riding up and up, but right now it has peaked and has actually come off.  Why? Demand is down. 

Hifi prices are already outrageous and will only go up. Many manufacturers have already increased their prices and more to follow, even in the upcoming recession.

Housing may or may not have peaked, it may or may not be dropping...housing may be taking a breather due to lack of supply fatigue. If someone is fortunate to have no debt and own their home, then you have an inflation hedge. Relative buying power for your housing remains in tact.

 

Regarding the rest of economic handwringing, if you have a properly balanced portfolio of assets and actively rebalance periodically then the churn isn't unwelcome. I love the comment about the market dropping yesterday without the same level of zeal for the day prior. The stock market performance for the week isn't a big deal. Audiophiles have predicted 50 of the last 5 recessions.

I posted this under another thread but 8 years ago my integrated cost $2500. The one I have now is much better, does more things, and only cost me $2700. Prices are not really going up for what you can get as long as you know what to look for and have reasonable expectations.

Whatever happened to being a smart shopper?

All the best,
Nonoise

@grannyring 

 

Hope you are well Bill!

 

Demand stops them. It’s always about demand and supply. Yes, prices do come down. The housing market has been riding up and up, but right now it has peaked and has actually come off.  Why? Demand is down. 

Demand isn't down, supplies are at historic lows. If you remove "stale" housing inventory from the equation (think a teardown priced at new construction per sq ft, there are some truly stupid listings out there) then the ratio between the number of potential buyers and potential sellers is nauseating in the event you are looking for housing. Another challenge...conforming loan amounts have failed to keep pace with housing prices. I'm not saying housing prices won't fall but there is enough pent up demand from groups with large savings that it won't be anything like 2008...home equity is also at historic highs. 

 

Its the same old adage though right? Its a recession if your neighbor is struggling...if you are the neighbor in question, its a depression.