All I want for Christmas is for my presents to actually arrive!
Supply chain issues weigh on the global economy. It has been reported that 90 ships are in queue outside of Los Angeles, and more than 20 ships are backed up outside of Savannah, GA. Orders online that we are accustomed to receiving the next day, they now say will ship in three weeks.
The combination of Covid shutdowns, stimulus payments, and a lack of workers returning to the workforce have created a nightmare of supply chain logistics.
In the meantime, we have the combination of high inflation and dramatically slowing economic growth. The US economy has gone from growing at a rate of 6.5 percent all the way down to 2 percent in a matter of months.
This is a strange economic soup, but the greatest concern is likely inflation. This means that stocks should be the best place to be as they are the best hedge against inflation. We could see an environment where the economy limps along, but the stock market does well.
Inflation hurts consumers and destroys savers but can actually helpinvestors. Even though we are investors, this is not a good situation for the long haul.
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