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"Buy In Advance" Mentality Enters the Starting Gate
Daily Rap 09-24-2021
The market saw a good deal of motion through midday, with the indices modestly lower. In corporate news, Costco was successful at beat-the-number, and I bring that up because the company had a lot of interesting things to say about inflation and shortages (which precipitate buy-in-advance strategies), none of which made it sound like the multitude of problems that are creating cost pressures are going to be alleviated anytime soon (certainly not by a bit of tapering). Here are a few examples.
Big-Boxed In
"Now, I was asked back in March in our second quarter earnings call at what level we found inflation was running overall on the sell price side. I stated and our best guess at the time was somewhere between 1% and 1.5%....more
Last year's posts for Ask Fleck
Q: With tax loss selling into year end do you think the minors are dead money for balance of the year
Fleck: I don't, but it is possible. Dead money seems unlikely, as it is such a small group. They will go up or down, not sideways, I think, but that is a guess.
(posted: 9/24/2021)
Q: Hi Bill,
If China's real estate is in serious trouble. Would you think the need for raw material commodities drop. Could we make the case if they will slow down the amount of new buildings which could trigger a demand reduction for all materials needed for housing? Therefore would steel and copper producers be put under pressure?
Thank you
Fleck: Steel for sure, copper probably, but then there are bottlenecks elsewhere and "green" stuff needs lots of copper.
(posted: 9/24/2021)
Q: I’ve been someone who believes crypto adoption has had a negative impact on gold. However, when you see crypto being slammed by China and gold does not react, it certainly seems like bigger forces are at work against gold than merely crypto adoption.
Fleck: Gold was up almost 1% then it got slammed by the same crowd, IMO. Let's see what the day brings.
(posted: 9/24/2021)
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