Fed rate increase = lower hifi prices?

A key purpose of Central Banks raising interest rates is to tame inflation. But macroeconomic measures are akin to turning an oil tanker - they take time to have an effect. Rate rises also tend to have the effect of strengthening the currency, making imports more expensive. Currency markets react much faster than consumer price setters do. In a globalised economy exchange rates are heavily influenced by what other players do. So for example, the Euro fell against the Dollar recently because the ECB did not mirror the FED's actions. The indications now are that the ECB will begin raising rates, so that will affect the Euro dollar exchange rate. In any event, consumer price inflation has happened for a whole host of reasons - supply chain shortages, labour shortages, winding down of quantitative easing etc. In short, I would not expect interest rates in and of them selves to have any appreciable effect on the price of hi fi.

@retiredfarmer 

No need for unverifiable phallic measuring contests about whose net worth moved more during a pretty narrow timeframe. You guessed right on real estate and gold during that window. You are also fortunate that the Canadian dollar tracks so nicely with the US dollar. Rather than searching for someone to admire the paper gains you seem to be enjoying, you are hopefully implementing a strategy to secure and hedge against the coming unwind of Canadian real estate gains pushed (until recently) by the arms open policy toward the monied class of China so prevalent in Canada in recent years. 

Gold was not a great investment during the pandemic. It was not awful, but it and silver until recently totally under-performed. Real estate did well due to lack of supply caused by a whole host of issues in some countries, not just pandemic or China, but general immigration, zoning blocking construction, policies that provided "false" affordability, etc. However, in some countries, said real-estate is declining (Canada for instance), and could be headed for correction leaving those most vulnerable to holding assets worth less than the debt they hold against that asset. It’s the 80’s all over again. People 8+ year into ownership with mortgages worth more than the house. It’s fine if you can weather it for another 10 year.

@ghasley  thank you I knew some true colors would show up. 

Regards

Some here sound like they're boning up on economics by reading anything they can and regurgitating talking points so as to sound relevant and further a conversation that's going to go nowhere. For all the goldbugs out there, if and when it starts to get really bad, how finely does one have to grind up the gold and how do you season it to make it palatable?

All the best,
Nonoise