Fed rate increase = lower hifi prices?

@artemus_5 the only thing I’m absolutely certain of is you haven’t extensively studied macro economics or finance. That’s ok and no offense intended. The money supply will be contracting by $20-30 billion in May, $50ish billion each month thereafter. You seem to imply that markets should only go up…do you hold everything in contempt when your assets grow by 15% in year A if they decline in year B? So, if you hate big corporations and big banks, I hope you dont own any mutual funds…because you too are a stockholder of those very entities you seem to despise.

The markets were functionally flat this week. You had time to convert to 100% cash on Thursday, had you chossen to do so. You would have outperformed the S&P 500 for the week. Long term investors with a balanced portfolio with a strategy dont think that way…

Well we know it is not you @ghdprentice , that or you are just a lot less informed than you think you are.  I am not suggesting that audio companies are, but their suppliers are in some cases. We track our suppliers underlying costs with great detail. Why? Because when you know their underlying costs and can put that in front of them and explain, like all commodities surges, it will not last forever, and we will remember, it helps in bargaining.

Japan is a beautiful place. I would live there. Surprising amount of open space considering the number of people in a small space. China, communism is not for me. South Korea is quite nice too. I am sort of partial to Taiwan though.

@soix I have the impressing during Covid that most western countries were "printing money" in excess of what was necessary and/or at least without sufficient oversight for need. Pure Keynesian economics I thought was out of favor? QTM would explain at least some part of the inflation. Unfortunately with the stock run, though that already had wealth (likely many here) did okay, while those who did not fell further behind even though they were the ones most in need of additional money supply.

https://www.businessinsider.com/how-measure-inflation-raise-prices-corporate-profits-supply-chain-2022-2

https://www.usatoday.com/story/money/2022/04/27/price-gouging-corporate-greed-driving-inflation/7445429001/?gnt-cfr=1

https://www.forbes.com/sites/raulelizalde/2022/02/23/car-prices-above-msrp-reflect-price-gouging-rather-than-inflation/?sh=7b7bdbd1b60a

@deludedaudiophile

The fact that the world economy didnt come to a screeching halt in mid-2020 is clear evidence that the monetary policy worked. Its time to unwind it in as orderly fashion as is possible. Now, are the past 24 months in the economy and financial markets a surprise? If they are a surprise to you then please take some time to explore the topic more deeply. If its not a surprise and you didnt position yourself financially…why not?

I’m pretty conservative so a major part of my portfolio was hedged in March of 2020. I got to unwind the positions in an orderly fashion and the hedges went through the roof(see what happened to the VIX in March 2020). You reinvest when markets are down and repeat. If you dont have a financial advisor, get one. Most who dont have one may be under the mistaken impression they dont have enough investable assets. Keep looking until you find one, it can be financially life altering.

@ghasley

+1

@deludedaudiophile

I love Japan, just like mainland China… lots of space to enjoy living… I have lived there for over a couple years.. I’m not that keen on Taiwan… too many mopeds, too many earthquakes. Singapore nice and clean. I spend lots of time in contract manufacturers, component manufacturers all over Asia. I have a masters degree in finance. Not sure of your point.

@artemus_5

But I assure you the savvy investors know this market is over inflated and is being propped up. When the bubble bursts, who will get hurt?

Well I’m pretty market savvy and I don’t know that at all. What bubble? What valuation metrics are you using to back up these silly statements?

Then as @deludedaudiophile has pointed out, the exorbitant printing of $$$ How many Trillions have we printed?

The Fed was trying to achieve their inflation target and avoid us sliding into disinflation and/or deflation. Take a look at Europe with their negative interest rates — would you prefer paying someone to hold your money rather than earning a return?

Its well known that China would love to have the reserve currency.

It’s well known I want a Ferrari, doesn’t mean it’s ever gonna happen.

I’d love to know why you believe we have a "strong economy"

The annual GDP growth as of 3/22 is 3.4%. I’d call that pretty strong. Dude, you need to stop getting your economic news from Fox News and figure out what’s really going on. Sheesh.