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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Daflye who wrote (5495)2/5/1999 10:27:00 AM
From: Challo Jeregy  Read Replies (1) | Respond to of 99985
 
Daflye,
It seems as if you are in a good position to register how J6P is viewing everything. (what do they think of the pres?)

IMVHO, I think the transports tell us a lot, just by the way they are acting. I think it odd that, with oil so low, and fuel being airlines biggest expense, that the airlines cannot move up more. Trucking also.
And there are layoffs. Airlines tried to raise rates 15 times in the last year, with the latest price increase looking like it will stick.

Now, if airlines are cutting expenses (ie. jobs), have low fuel costs and still can't produce big-time better than expected profits, what does that tell us? And, they are having a hard time to raise prices.

Is this part of that "deflation" that we heard talked about last year?

In fact, many different businesses in all sectors cannot raise prices in todays environment. Lots of competition. (And, I'm sure other factors that I haven't thought of). The only place I see price increases are at grocery stores (they blame weather, but I don't believe that on many items: I mean, what, bleach is affected by weather?!!!)

Oh, and tobacco. But that's another topic altogether.

So, we see modestly higher wages (well, some people do. I think, possibly, that much of that is union wages). Strong job growth. More people spending $$. Would J6P still spend all those $$ if prices went up?

Lots to think about.
I need some more coffee.
(and its not Starbucks <g>)

Challo