As we head into spring, the economy has never been so turbulent.
The Fed was supposed to cut rates, but at their meeting, they did an about-face and didn’t cut rates but stated cuts may not come this year. Mortgage rates soared, and the stock market tanked on the news. The job market remains strong, and unemployment is low. The two inflationary indicators, the producer price index, and the consumer price index, both came in higher than expected, signaling that inflation clouds still hover.
The real estate market remains with little inventory and high prices. Some economists think this trend may last the next 3-5 years. The only way to buck this trend is:
- Layoffs
- Relocation
- New construction
Truly, no one wants to see someone lose their job and have to move to find employment so relocation and new construction are the options to create inventory.
Note: Materials for construction are back to their normal costs.
Fuel source
- Hydrogen is being pushed as it’s clean and readily available. BMW in 2025 will offer their famous X5.
- Conventional fuel
- Hybrid
- Full electric
- Hydrogen
Huge investment by the automaker to undertake such an endeavor. xxThink of the tooling to assemble each drivetrain. Toyota is all in on hydrogen as in a few years they will have at least two hydrogen cars as they have one now offered in California. Internationally, the far east are driving hydrogen cars especially in Japan and China.
Automobile sales are getting hit by the higher rates. According to economists the average auto payment now exceeds $750. 2024 will be a huge year for their sales as many are introducing new models that are radical to last years. Aforementioned, many cars will have variable offers for fuel. Example, the Dodge Charger will be a hybrid ass the purists disagree. Stay tuned.
College tuition continues to increase as the government is trying to forgive student loans. You might think before the government starts forgiving debt he would meet the President of the colleges and have a tuition freeze otherwise you are only adding to the deficit. Politics aside this matter will garner votes from the students and what do politicians love most-votes. Spread the word on www.silverspoonmoney.com .
Thank you.
That wraps up the March blog of Silverspoonmoney. Any suggestions or questions can be emailed to johngouley@gmail.com.
Respectfully,
John Gouley, Creator.