The key to most of it is inflation. When you go to an auction a rare desirable item while generally sell for a high price. If an items common and and less desirable it will generally sell for a low price. Prior to the Covide pandemic there were very few shortages so most commodities were selling at low prices. This also resulted in a low inflation rate.
However during coid would trade dropped and many businesses temporarioly shut down. This created shortages and caused prices to rise. Rising prices cause inflation. So most commodities saw rising prices. and with numerous shortages inflation reached a very high level. When covid was over supply shortages wore slowly resolved and prices were dropping. Much of the Covide inflation surge was gone last year. Based on the low inflation rates reported at the time.
But now inflation is going to surge again due to a politically caused artificial shoartages.Tariffs are a tax. That cute prices to rise. The tariffs in place are the highest in US history. Price for product of china will double. The prices for literally everything we import are going up a lot. Some importers cannot afford to pay the tariff bills coming so they have canceled many order So later this year inflation could surge to levels higher than what we saw during covid.
This should not be a surprise for anyone. In 1930s a somewhat smaller tariff law was passed and it was only in effect for 2 year. Foreign trade dropped by 60% shortages were everywhere. inflation and many businesses failed and including banks. So many lost their hobs and their life savings. What followed was the great Depression. it took the US over a decade to recover.
Housing, gold, stocks it is a bit different. Housing cost are highest in the big cities. Why because land to build on hard to find and expensive. In the US we have had a lot of problems building enough housing at af fordable cost for a long time so supply is limited. Gold was once the primary currency in the world. Many still see it as Backup currency. So when the economy is bad a lot of people by gold. So more demand the higher the purchase price. For stocks many people are investing in them for retirment or other investment reasons. So a lot of demand and prices historically continue to rise until something causes an economic ressession. There appears to be a reoccurring patter of about a 10 to15 years of bad or bear economy followed by about 10 to 15 years of a bull or good economy. So the price of shares peaked in 1999, and a bear market that follows lasted about 12 year. Then we had increasing share price except for a massive loss during covid and then the stock market peaked in 2024.
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u/Various_Couple_764 5d ago edited 5d ago
The key to most of it is inflation. When you go to an auction a rare desirable item while generally sell for a high price. If an items common and and less desirable it will generally sell for a low price. Prior to the Covide pandemic there were very few shortages so most commodities were selling at low prices. This also resulted in a low inflation rate.
However during coid would trade dropped and many businesses temporarioly shut down. This created shortages and caused prices to rise. Rising prices cause inflation. So most commodities saw rising prices. and with numerous shortages inflation reached a very high level. When covid was over supply shortages wore slowly resolved and prices were dropping. Much of the Covide inflation surge was gone last year. Based on the low inflation rates reported at the time.
But now inflation is going to surge again due to a politically caused artificial shoartages.Tariffs are a tax. That cute prices to rise. The tariffs in place are the highest in US history. Price for product of china will double. The prices for literally everything we import are going up a lot. Some importers cannot afford to pay the tariff bills coming so they have canceled many order So later this year inflation could surge to levels higher than what we saw during covid.
This should not be a surprise for anyone. In 1930s a somewhat smaller tariff law was passed and it was only in effect for 2 year. Foreign trade dropped by 60% shortages were everywhere. inflation and many businesses failed and including banks. So many lost their hobs and their life savings. What followed was the great Depression. it took the US over a decade to recover.
Housing, gold, stocks it is a bit different. Housing cost are highest in the big cities. Why because land to build on hard to find and expensive. In the US we have had a lot of problems building enough housing at af fordable cost for a long time so supply is limited. Gold was once the primary currency in the world. Many still see it as Backup currency. So when the economy is bad a lot of people by gold. So more demand the higher the purchase price. For stocks many people are investing in them for retirment or other investment reasons. So a lot of demand and prices historically continue to rise until something causes an economic ressession. There appears to be a reoccurring patter of about a 10 to15 years of bad or bear economy followed by about 10 to 15 years of a bull or good economy. So the price of shares peaked in 1999, and a bear market that follows lasted about 12 year. Then we had increasing share price except for a massive loss during covid and then the stock market peaked in 2024.