Fed rate increase = lower hifi prices?

@daveyf, the reason I have used this economist for 15 yrs is because they did make my business a fortune so I don't have to rely on Vegas :)  They don't forecast the stock market either.  And, yes, no one has a crystal ball and they didn't predict covid or Ukraine or any other black swan event that comes our way.

The real gist of this thread is prices are high and maybe or hopefully they will come down.  All I am saying is that the input costs into these products including labor are not forecasted to go down anytime soon.  We may be waiting awhile to see it happen.  So if a reader is holding back on purchasing something, consider that the price could go up 20% over the next 4 yrs so you'll need a 20% reduction just to get to the same "high" price point as today.  Of course 4 yrs from now, todays price will be a "deal" and won't be considered "high".

I told my sales team this week:  The best time for a customer to purchase our industrial equipment at the lowest forseeable cost is today.

@greenngoldcheesehead 

Name the firm please.

Thought on the Bank of England predicting inflation could reach 10% by the end of the year and that could be coupled with a recession?

With 4-5% inflation without compensatory growth, that would suggest a potential for significant decline of the stock market total asset valuation

That’s just simply not true.  Using a 2022 S&P500 earnings estimate of 230 the current earnings yield is 5.5%, which leaves quite a bit of leeway for rates to rise before putting pressure on stocks (yes, I’ve done the research).  My expectation is after the dust settles we’ll head back down more to the 3% inflation range given our base rate for years has been stuck at less than 2%, but we’ll see.  

@soix

The new member (as of today) making an unatrributed reference to an “economic forecasting service” who happens to predict a worldwide depression 13 years from now seems “suspect”.

In your entire career or experience, has any reputable firm EVER made such a forecast? I don’t recall ever seeing anything like that…even doomsday cults stopped using exact dates.