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Wednesday, June 22, 2022

Deflationary Tsunami On Deck: A "Tidal Wave" Of Discounts And Crashing Prices

Three weeks ago, we showed readers what happens when the infamous "Bullwhip effect" reversal takes place by presenting the unprecedented surge in the "Inventory to Sales" ratio for a broad range of US retailers covering the furniture, home furnishings and appliances, building materials and garden equipment, and a category known as “other general merchandise,” which includes Walmart and Target. Since then, this ratio has only gotten even more extended, and as shown below it is now at the highest level since the bursting of the dot com bubble!
-WiscoDave

6 comments:

  1. I'm betting things like food, lumber, and other important items won't go down at all.

    ReplyDelete
    Replies
    1. I am too since I'm building a house and we just ordered lumber, windows and door. The price was much better than a year ago when we had the garage built - ouch

      Delete
  2. Tighten your belts, going to be a hell of a ride!
    Melk

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  3. Interesting...just saw an article about Samsung having massive excess inventory on phones, and I've been noticing some crazy low TV prices this week, both of which seem to be in line with this theory.

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  4. This is a fairy tale to distract low-information sheeple from the inflation train we're all riding.

    ReplyDelete
  5. Shortages worse than toilet paper two years ago are coming with the low prices.
    Daryl

    ReplyDelete

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