Fed rate increase = lower hifi prices?

@daveyf

@soix Take a look at the very interesting post from retiredfarmer above. Unfortunately, I think he has some very good points.

That’s kind of the point...everyone has good points...everyone’s perspective matters. A word to the wise though...going all in on a gut investment theory, especially one driven by emotion, is the stuff that dreams are made of if you happen to be a bookie or a professional investor. At the dawn of the pandemic, markets actually behaved logically and priced in a rapid slowdown in the economy and asset deflation...then the stimulus, then the change in human behavior, then inflation caused by predictable supply chain disruptions.

There seems to be a pervasive anger brewing among some that the apocalypse hasn’t happened as often as so many like to fear or preach (the choice of the word isn’t accidental). The FEAR of an apocalypse is the most effective way to predict human behaviour though. Interesting stuff to watch. I just try to live drama free and make decisions on that same basis. There’s always someone willing to buy beanie babies and tulip bulbs, which always leaves me scratching my head. Gold is my least favorite place to park investible resources. To each is own.

I just wanted to say it's nice to see folks discussing economics and a bit of politics here and not getting all twisted up with rage or whatever. Nice job fellas and some great points from @soix I will say @ghdprentice there's definitely been some gouging and some companies showing record profits during inflation. Obviously that's not the whole story but it has happened.

@jond +1,000

I wonder if we could ever reach a consensus on which industries should or should not be allowed to price their products as they see fit?

Oil/energy seems to always draw attention when prices rise when, in fact, it may be one of the more efficient markets when it comes to pricing. If a company must prioritize the public good OVER the best interests of the company then wouldn't fair minded people agree that if there is to be a forced pricing ceiling shouldn't there also be a forced price floor? Fair is fair right? Health care costs? Agricultural products?

@ghasley You are right with regards to your last paragraph when it comes to pricing. Unfortunately, in a true capitalistic society the ability to have no price controls is paramount, and as such free market reign is also paramount. The result of this is what we are now seeing in a number of areas of inflation...caused by legitimate market factors, and most likely many non-legitimate market factors ( like simple profiteering and gouging!) ( LOL, unfortunately some will probably argue that even these non-legitimate factors are perfectly acceptable in a truly free capitalistic system!)

@daveyf 

Indeed. Profiteering and gouging are interesting concepts aren't they. I don't know of too many people who willingly sell something they own for less than market value. I want someone to sell me a perfect JBL Paragon at its original MSRP! Somewhat depends on which side of the transaction one finds themselves. I sortof chuckle to myself though when I hear the accusations of gouging. The opposite of much of the accusations of profiteering or gouging is subsidizing.

I don't get a vote, I just get the privilege of participating, but I believe in free markets so I am equally opposed to price ceilings and/or price subsidies.