Steno's Signals: What to Make of the Real Estate Rebound
Real Vision: Finance & Investing
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The Inverse Relationship Between Wages and the Consumer Basket
As long as wage inflation is as high as it is currently, we will not see the sticky components of the consumer basket dropping in price. When real wages increase, so you get a larger spending power, it basically also means that the average selling price from a company declines relative to the margin. And I actually think that we're staring into that maybe, say, six, nine months down the road. Wages will remain sticky through the second half of the year, and then they will drop back materially into 2024 if you ask me.
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