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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: THE ANT who wrote (4710)4/7/2020 12:54:00 AM
From: elmatador  Read Replies (1) of 13777
 
The problem no one is talking about is: Post- Covid will unleash deflation.

Across the economy all producers are trying to make cash as fast as they can and sell inventory.

Businesses that have access to cash are buying that inventory on the cheap to sell for a profit.

But they cannot hoard the inventory longer. They will sell for a profit as soon as economy opens up.

Demand will be depressed because of jobs losses. Uncertainty about jobs real or imagined and that is making people postpone buying.

People will off load real estate.

Commercial real estate

New projects will ground to a halt.

Not every sector can do like oil that cut production to reflate the prices.

Brace for a deflationary post-Covid economy
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