Fed rate increase = lower hifi prices?
Will the recent rate hike meant to slow down the economy result in lower hifi prices? Seems everything shot up during Covid. Will we now see some relief?
I posted this under another thread but 8 years ago my integrated cost $2500. The one I have now is much better, does more things, and only cost me $2700. Prices are not really going up for what you can get as long as you know what to look for and have reasonable expectations. Whatever happened to being a smart shopper? All the best, |
Hope you are well Bill!
Demand isn't down, supplies are at historic lows. If you remove "stale" housing inventory from the equation (think a teardown priced at new construction per sq ft, there are some truly stupid listings out there) then the ratio between the number of potential buyers and potential sellers is nauseating in the event you are looking for housing. Another challenge...conforming loan amounts have failed to keep pace with housing prices. I'm not saying housing prices won't fall but there is enough pent up demand from groups with large savings that it won't be anything like 2008...home equity is also at historic highs.
Its the same old adage though right? Its a recession if your neighbor is struggling...if you are the neighbor in question, its a depression. |
How do you come up with these ideas? If the rates go UP, the Mfgs,& the home buyer pay more for borrowing $$$. That means mfg price increase and home buyer & renter payments go up
These rates are VERY LOW. IE Gas prices are very near doubled. That’s close to 100% NOT the 41% posted. Diesel fuel hit an all time high this past week. It is $5.29 here where its cheaper than a lot of places. this effects EVERY product because most everything is shipped at some point via Truck which uses diesel. Used cars were up 35%. I do most of the grocery shopping and can assure you that 10% is NOT ACCURATE for food. Hamburger was 3.50 LB Now it is $4.50-$5. That is 30-35%. coffee which was $6 is now $8.50. Thats about 45%. And consider this. the Cost of living index does NOT INCLUDE food, gas & housing. The market dropped bu over 1000 points yesterday. And as we speak the DC politicians spending $33 Billion more of OUR $$$, Not on us though Google Klaus Schwab, The World Economic forum, The great reset. I suspect what is coming will make 2008 look like a walk in the park. So buckle up folks. We have very few friends in DC. A D or R means nothing They have sold US out As @nonoise has said
And why not? We do nothing to stop them
We had local elections here in the UK yesterday and for the first time in ages I couldn’t bring myself to vote for any of the parties. The Convid Plandemic, and particularly the crippling Lockdowns, has dealt a huge blow to many economies and now someone must all pay for it. Guess who? Many many people will suffer, but not all.
Our Lords and masters, the global lending banks.
Come to think of it, perhaps I should have at least made my feelings felt at the ballot box by scribbling Klaus Schwab across it? I’m afraid it’s time to buckle our belts my friends. There might be some serious turbulence ahead and don’t forget your thermals for next winter! Now does anyone know whether you can use MDF as firewood...?
|
Okay, I’m no electrical engineer and have no expertise in equipment design, but I have spent my career in finance as a market strategist and money manager so take this for what it’s worth. In normal times you’d think raising rates leading to a slower economy, decreased demand, and possibly a recession then yes, eventually audio prices might come down somewhat. But, these are not normal times. Inflation is not being caused by demand but by a lack of supply due to covid shutdowns, China limiting its shipments, etc. Raising rates will do nothing to fix this because demand is not causing the problem. In a few months inflation numbers will have easier comparisons versus last year, which by itself will bring inflation numbers down, and as covid (hopefully) continues to wain and supply channels and factories get back up to speed that will alleviate the supply problem, so between these two factors we could see inflation come WAY down over the next six months or so. That’s my take anyway. So, bottom line and to answer your question directly, despite rates rising they are still extremely low by historical standards and the underlying economy is strong with historically low unemployment, so a 50bp hike here or their and the 10-year at 3.1% it’s unlikely the economy — and hence demand — will be affected to any significant degree and thus there’s no incentive or need for audio companies to lower their prices. And my bet is once inflation numbers come down for the reasons mentioned above the Fed will feel less pressure to raise further and long yields will moderate and possibly even come back down. Good question though. |
