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I dont know either.. but I can say that in some extractive industry, for example timber and wood products.. in a commodity market that is an old, established ma
by mistrial9 2y ago
I dont know either.. but I can say that in some extractive industry, for example timber and wood products.. in a commodity market that is an old, established market.. profit and economic expansion that occurs in other aspects of the economy do not reach the economics of the timber. In other words, newly minted millionaires by stock offering and corporate employment in the cell phone industry, do not move the needle on the core parts of the old, commodity timber products. Public news and government statements act as if there is "one economy" that is doing well or not doing well, but this is superficial .. trade goods transacted in the US dollar are sort of linked; trade of goods and services under a unified set of laws like USA interstate commerce laws are sort of linked.. but in Truth, there are winners and losers each year, and that extends to whole market segments, too..
This is a long introductory statement to say that.. just because landlords in Santa Clara County California are driving Porches, or ex-FAANG digital nomads count their money in units of $100k, does not at all mean that big, stable companies and their owners and investors, are seeing the growth that others nearby are seeing.. SO .. how to "catch up" when you are an big brand food company? raise prices.. "greedflation" .. but its not just greed, its a distribution system of profits.. this is an old situation. Stock markets are supposed to ameliorate this friction but not perfectly.. young Turks want Lambos, not fairness.
There have been sarcastic articles about medical doctors that are envious of stock brokers because the doctors cant buy the biggest houses anymore.. but it also includes a local Mexican restaurant going broke on labor and food costs, while Lambos drive by on their way to the airport.. source: personal musing