2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 375.93

-1.8%

Nov 14 4:00 PM EST

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To: Slagle who wrote (23426)	10/2/2007 10:05:21 PM
From: TobagoJack	Read Replies (1) of 217808

in the mean time, this just in my e-mail box, from the front line trenches ... Had a long conversation yesterday with a large supplier to Walmart and others. They do a couple of billion in business per year. He noted that Chinese manufacturers are all hitting the wall in regards to profitability. That is, they now have to pass along price increases. He says that passing along price increases is doable for new products. But for legacy products, US retailers are refusing to accept higher prices. But Chinese manufacturers are now refusing to sell new product unless it is a large portion of their total sales. For marginal buyers of their products, they are simply refusing to seel anymore product. He thinks this will come to a head in a few months, and that everyone is going to have to shoulder some of the increases in costs. - The Chinese manufacturers, the distrbutors, the retailers and the consumers. Inflation may go down in a couple of years, but it is going to have to go up in the next year or two irrespective - unless the US consumer sharply reduces its buying, which is the other side of the coin. In any case, p-e's of 15 aren't so cheap for US stocks if profit margins are going to decline substantially in the coming year or two.... I somehow doubt that that is factored in to current stock prices. But who knows, I've been consistently wrong for nearly a year now...... Mac DeleteReplyForwardSpamMove... Previous \| Next \| Back to Messages Save Message Text \| Full Headers

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