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Forward Guidance

Inflationary Recession Is On The Horizon | Paul Hodges

Apr 3, 2022
01:10:23

Podcast summary created with Snipd AI

Quick takeaways

  • The chemical industry's ability to pass on price increases serves as an indicator of demand and can predict an inflationary recession.
  • Geopolitical tensions and supply chain disruptions can lead to reduced natural gas supply, impacting industries like chemicals and raising concerns about inflationary pressures and potential food scarcity.

Deep dives

Chemicals as a Window into the Global Economy

Chemicals, being the third largest business in the world after energy and agriculture, provide a broad view of the global economy as they are present in almost everything we use. From plastics to electronics, chemicals are interconnected with various sectors. Unlike other industries, chemicals require understanding of various aspects like housing, electronics, oil, natural gas, and more. The chemical industry also serves as a leading indicator, as it is directly impacted by economic cycles and provides early insights into trends like inflation. By analyzing price movements and the ability to pass on costs, it is possible to gauge shifts in demand and economic conditions.

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