August 13th, 2022 | High Prices, Inflation, Stocks, Population, Las Vegas, Railroads & Strong Job Market

<p>High Prices The highly anticipated inflation numbers for July came out today and were better than expected. July inflation was 8.5% a decline from June‘s inflation numbers of 9.1% and also below the forecast of 8.7%. One month does not make a trend however I believe this could be the start of the decline to December 31, couple reasons I think that. We have continued to post about different commodities and how their prices have come down and it would take some time to get through to the consumer. I believe we’re starting to see the benefit of those declining commodity prices at those commodity prices will continue to decline. Supply chains at this time will not drop and will either stabilize or increase supply and continue to rise faster than demand. I also believe the consumer will not go back to high spending, they are still feeling the effects of the higher prices and will continue to reduce where they can. I have also mentioned in the past about the higher base number for inflation which would make year over year inflation numbers lower. Stay tuned we will continue to watch inflation closely Inflation I have talked in the past how I expect inflation will ease as commodity prices decline and we are now seeing that unravel as hedge funds have continued to drop the contracts bringing prices way down for soybeans, wheat, and corn. The biggest decline has been seen in wheat, which is down 27% over the past three months, corn has fallen 24% over the same time while soybean is down 14%. This will not be reflected tomorrow at the grocery store and if we have a difficult harvest this summer and Ukraine exports of wheat stop again this could turn around and go back up. We will be watching this but as of now I think will see inflation cool over the next few months Stocks On our radio show and podcast the Smart Investing Show, one of the valuations that we cover is the price to tangible book value which backs out intangible assets. When they economy slows down and markets decline this is when investors can begin to s