I got this off another board. They are talking finance, but I don't follow what they are talking about. Terry
T..numbers came out at 8:30am this morn. Flip over to CNBC..they are all over the story. Mkt down because of this. J
Total Goods Produced. As for the hows and whys..no matter how many times I listen to economists.I dont pay attention, and thus have not digested the answers.
Joel good time to do some holiday shopping. Forget the goods produced, everything is produced in China these days. Funds are reshuffling their end of quarter/year positions to look good. Start the new year with a bang.
Sorry TOK, I've been so caught up with my Gator buddies I've not checked back here in a day or two.....by "Producer Prices" they are measuring prices at the wholesale/production level....a step or two removed from the consumers further back in the supply chain. The concern is that if there is price pressure at the wholesale level, one of two things has to happen: 1) prices get passed onto the consumer resulting in rising consumer prices and therefore less disposable and investable income or 2) consumers hesitate to pay up, businesses have to eat the price increases and therefore compress margins and reduce earnings.....assuming the price pressures are systemic and not temporary in nature either scenario makes investors less than happy.....my sense is that so long as there is an available supply of cheap labor - e.g. China, meaningful systemic inflation is not a major threat. This too shall pass, imho.....