Supply shocks solved
Charlie Bilello always provides sensational insights from the US on Twitter, and is well worth a follow.
From this weekend alone...freight costs are now - almost unbelievably - lower than they were at the start of the pandemic, having plummeted by an astonishing -87 per cent.
On the rampant demand side, things have been gradually cooling a bit too.
The average price of a used Tesla has fallen by US$21,000 since July last year, as charted by Charlie:
Gas prices are now tracking -20 per cent lower than a year ago.
In Australia we aren't quite there yet, but given the significant drop in oil prices of late it shouldn't be too long before unleaded prices are down by a similar amount from a year earlier (diesel prices have remained strangely high, on the other hand).
As for US interest rates? Well, they are now expected to fall now over the next two years, as markets price in rising concerns about major stress within the banking system.
