Fed rate increase = lower hifi prices?

Everything will be 50% off.

@soix 

"In a few months the CPI comps to last year alone are gonna dramatically reduce inflation, and as supply channels gradually open inflation will fall even further and we’ll still have an economy growing at above 3%."

Yes, that is one way to avert disaster, providing that it's benefits trickle down to the working people.

Let's hope that you're right.

It's certainly a pretty confusing situation here in the UK right now.

Confidence in politicians seems to be at an all time low but our chancellor Rishi Sunak seems to be one of the more capable ones.

Some of still remember 2008 when we were told that it was either plan A or bust!

There was no plan B.

@cd318

Some of still remember 2008 when we were told that it was either plan A or bust! There was no plan B.

In my experience as an analyst on Wall Steet, there are five major factors that lead to big problems and big market capitulation: Overvaluation, recession or other significant economic imbalance, persistent high inflation, some bubble somewhere, or some catastrophic exogenous global or geopolitical event. The first four, in my opinion, are not in play, and unless the Ukraine crisis expands beyond that country’s borders then it’s not a big enough event to create a major global disruption. In 2008 there was a clear and significant bubble in real estate that had significant ripple effects throughout the economy that also rightly rocked the financial markets, but there’s nothing like that present now. Unless one of the five issues above becomes a bigger problem I’m not worried, FWIW.

@soix   You don't see the factors you mention as being present now????

No, at least not to any extent they pose any danger.  Now, if rates were to spike enough to risk a recession that’d certainly be a big problem, but I don’t see that in the current environment.  If you look back, it’s extremely unlikely for the US to go into a recession with rates around 3%, which makes perfect sense.  Now, if the 10-year gets up closer to 4% I’d need to start to reevaluate depending on inflation, etc.  We’ll just have to wait and see, but for reasons I mentioned earlier I believe current inflation rates are temporary.  The bond market is extremely smart, and if it thought we’re looking at sustained 6%+ inflation the 10-year would be a helluva lot higher than 3%.  Just MHO and again FWIW.