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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: claireg who wrote (260524)7/13/2010 7:18:54 PM
From: ValueproRead Replies (4) of 306849
 
Forbes magazine has an article in the latest issue about the prospects for inflation. They don't make any predictions, but point out evidence that it could - not will - be rising strongly in the near future.

They point out that industrial capacity utilization is near record levels already. Also, new regulations will soon force replacement of aging truck fleets just as the industry is anticipating a shortage of 400,000 drives by the end of next year. Deliveries are up strongly. Further, with any sign of better economic conditions, labor will be demanding higher wages to offset the lack of gains in the last couple of years.

And, inventories are so low in some areas, that any increase in demand will spark at least short term price spikes. Moreover, the earning season just now underway may well prove very much stronger than expected, sending up demand for all sorts of products and services.

Will these issues, if they come about, be strong enough to offset deflationary forces? Stay tuned.

VP in AZ
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