• May 18, 2022
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  US markets drop between 3 and 5 % for the 3 markets

  
  

  So-called 'safe haven' stocks are not immune. Consumer staples like Walmart and Target are seeing slightly higher revenues (nominally, not factoring inflation) but much higher costs (labor, transport, supply chains), and they are not able to pass these costs on to the consumer any more.

  
  

  So all stocks went down today almost. Every sector.
  

  
  

  Customers are buying groceries but aren't buying hard goods where stores like Walmart have a slightly higher margin.

  
  

  Yes, wages are up, but not as much as inflation. The highest cost increases are food and energy, and that's funneling away spending that would otherwise go to more profitable areas of selling.
  

  
  

  But the US economy NEEDS lower demand in order to trend prices lower.
  

   
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  <div><b>US markets drop between 3 and 5 % for the 3 markets</b></div><div><br></div><div>So-called 'safe haven' stocks are not immune. Consumer staples like Walmart and Target are seeing slightly higher revenues (nominally, not factoring inflation) but much higher costs (labor, transport, supply chains), and they are not able to pass these costs on to the consumer any more.</div><div><br></div><div>So all stocks went down today almost. Every sector. <br></div><div><br></div><div>Customers are buying groceries but aren't buying hard goods where stores like Walmart have a slightly higher margin.</div><div><br></div><div>Yes, wages are up, but not as much as inflation. The highest cost increases are food and energy, and that's funneling away spending that would otherwise go to more profitable areas of selling. <br></div><div><br></div><div>But the US economy NEEDS lower demand in order to trend prices lower. <br></div> 

  US markets drop between 3 and 5 % for the 3 markets

  
  

  So-called 'safe haven' stocks are not immune. Consumer staples like Walmart and Target are seeing slightly higher revenues (nominally, not factoring inflation) but much higher costs (labor, transport, supply chains), and they are not able to pass these costs on to the consumer any more.

  
  

  So all stocks went down today almost. Every sector.
  

  
  

  Customers are buying groceries but aren't buying hard goods where stores like Walmart have a slightly higher margin.

  
  

  Yes, wages are up, but not as much as inflation. The highest cost increases are food and energy, and that's funneling away spending that would otherwise go to more profitable areas of selling.
  

  
  

  But the US economy NEEDS lower demand in order to trend prices lower.
  

   

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