As HSBC alerts about a burgeoning commodity bull run amidst geopolitical tensions, concerns over inflation deepen, compounded by declining housing affordability, which poses challenges for middle-class homeownership in major U.S. metros.
Key points:
- HSBC warns of an emerging “weak” commodity bull run driven by geopolitical factors and global industrial cycle.
- Rising commodity prices contribute to inflation concerns, posing challenges for Fed Chair Powell.
- Housing affordability declines significantly post-COVID, limiting options for middle-class households in major U.S. metros.
Sources:
katusaresearch.com/buckle-up-the-commodities-bull-market-is-here/
www.zerohedge.com/markets/middle-class-cant-afford-homes-nearly-half-top-100-us-metros-study-finds
schiffgold.com/commentaries/the-copper-supply-shortage-is-here/
The inflation fight has stalled and the first rate cut won't happen until December, Bank of America, $BAC, has said per BI.
— unusual_whales (@unusual_whales) April 22, 2024
Potential Implications:
- Surging commodity prices may exacerbate inflationary pressures, complicating monetary policy decisions.
- Declining housing affordability could deepen socioeconomic disparities and limit middle-class homeownership.
- Governments’ inflationary policies risk eroding purchasing power and transferring wealth from real wages to the state.
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