{"id":10222,"date":"2022-10-25T18:49:48","date_gmt":"2022-10-26T01:49:48","guid":{"rendered":"https:\/\/www.stevesaretsky.com\/2022\/10\/news\/7502-2\/"},"modified":"2022-12-15T10:32:26","modified_gmt":"2022-12-15T18:32:26","slug":"7502-2","status":"publish","type":"post","link":"https:\/\/www.stevesaretsky.com\/2022\/10\/news\/7502-2\/","title":{"rendered":"The Beatings Will Continue"},"content":{"rendered":"
Inflation in Canada slowed less than expected, growing by 6.9% year-over-year in September, economist expectations were at 6.7%. A small miss that will have big ramifications. Markets immediately repriced Bank of Canada rate hike odds for October 26th, now expecting another jumbo 75bps rate hike. In other words, the beatings will continue until morale improves. Not to beat a dead horse, but the CPI index is a lagging indicator. Per Stats Canada, one of the reasons inflation didn\u2019t come down as much as expected is because furniture and car prices accelerated higher. Really? Every furniture store you go into these days is slashing prices and cutting their workforce. Let\u2019s not forget the comments from the CEO of Restoration Hardware in September, \u201cAnybody who thinks we\u2019re not in a recession is crazy,\u201d Friedman told analysts. \u201cThe housing market is in a recession, and it\u2019s just getting started. So it\u2019s probably going to be a difficult 12 to 18 months in our industry.\u201d They say stocks have information in their price. Here\u2019s Restoration Hardware, taken to the woodshed, down 55% year to date. <\/p>\n