Central Bank Issues, And Other Relevant Stuff
Although supply chain issues were meant to be a thing of the past, they continue to plague our supply systems. Have you noticed that finding parts and getting things fixed have gotten really challenging? It's not only in your head. And have you ever noticed how empty store shelves seem to be almost wherever you shop? I was shocked to discover how low stock levels had gotten during my most recent trip to the grocery store. I reasoned that they were preparing to resupply and that I had just come at the wrong time. However, as I dug deeper, I saw that significant supply chain challenges are emerging globally.
According to new study, more than 80% of brick and mortar consumers report having seen things that were "out of stock" this year.
According to statistics from software supplier Retail Insight, supply chain disruptions that are to blame for this headline figure's increase of 11 percentage points year over year are now gravely endangering customer loyalty.
Based on a poll of 1,000 people, the results show that consumers believe product availability has gotten worse since the epidemic started, according to 71% of respondents. A further 75% of respondents indicated that since the onset of the cost of living crisis, goods availability has gotten worse.
In addition to everything else, it's likely that this year's corn and soy production will fall far short of forecasts due to the seemingly never-ending drought in the country's heartland.
This week, a big heat dome will cause the heat index in our agricultural heartland to rise above 110 degrees, which is not at all good news.
Unfortunately, the entire globe has been dealing with very unusual weather patterns this summer, and global food prices are beginning to surge. - Michael Snyder
Cleveland Fed President: Inflation Staying Above 2% ‘Well Beyond 2025’
In a recent interview with Bloomberg, Cleveland Federal Reserve Bank President Loretta Mester expressed concerns over the potential for inflation to remain above the 2% target for an extended period. Mester indicated that, although economic growth has been stronger than expected and there are signs of inflation coming down, the data is still insufficient to be certain. She also mentioned that higher long-term rates would put downward pressure on inflation.
Mester stressed that under-tightening monetary policy would be a worse mistake than over-tightening because it could keep inflation higher for longer than desired. She said she would not want to entertain the idea of inflation staying above the Federal Reserve's 2% target for too long, particularly beyond 2025, which is currently what some forecasts suggest.
Going forward, Mester noted she would be "very cognizant" of these concerns when preparing her new forecast for the next Federal Reserve meeting. She believes that course-correction is easier to achieve in cases of over-tightening compared to under-tightening, implying a more hawkish stance on monetary policy adjustments to control inflation. - Breitbart
Betting Against the Bull: Michael Burry's Massive $1.6 Billion Short Against U.S. Markets
Are the investment markets about to finally implode? As I have been writing for a very long time, we desperately need a real correction so that we may once again invest based on value.
Daily Mail has recently reported that Michael Burry, the money manager made famous in the book and film 'The Big Short,' appears to be betting on a major downturn in the US stock market. Burry held bearish positions against the S&P 500 and Nasdaq 100 Index worth a combined $1.6 billion at the end of the second quarter, according to securities fillings released on Monday, August 14th.
The Put options convey the right to sell shares at a fixed price in the future. They typically increase in value if the price of the underlying stock declines, making them a defensive bet.
Burry rose to fame with his bets against the US housing market before the 2008 financial crisis. Michael Lewis' nonfiction book 'The Big Short' was released in 2010 and the movie version came out in 2015.
He also profited in the early 2000s by shorting high-flying tech stocks during the peak of the Dot Com bubble.
This is a complex matter to understand, I invite you to read the full article here.
Meanwhile, Disney Implodes - And Why This Might Matter To You
According to a recent article on Breitbart, Disney stock has hit a 9 year low. In fact, it is down 58% in two years.
Certainly, barren theme parks might have something to do with it.
The fact that Disney has so far released five box office bombs/disappointments this year and only a single hit might have something to do with it.
There’s no question the ongoing catastrophe of the streaming service called Disney+, a service losing billions of dollars annually and hundreds of thousands of subscribers, might have something to do with it.
The fact that Disney’s brand is in the toilet might have something to do with it.
Most of all, because Wall Street always looks ahead, the fact that Disney’s next Marvel film (The Marvels) and that widely ridiculed Snow White remake look like a couple of $250 million write-offs might have something to do with it.
I am not trying to explain what is happening within the Mouse world, just merely commenting on the financial position of the company.
So, why would this matter to you personally? Here is why: BlackRock and Vanguard own almost 15% of Disney, and due to their commitment to ESG investing they have been involved in the destructive downturn in Disney. Therefor, if you invest personally in either BlackRock or Vanguard, some of your assets have been treated as described.
Selecting just a few topics to cover in a financial blog can be a real challenge, especially given the current complex and ever-changing economic landscape.
From inflation concerns and Central Bank policies to market trends, investment opportunities, and supply chain issues, each topic is a rabbit hole of information in itself.
