/biz/ - Business & Finance

>>56649297
As I said, good for you m8. I am a recently graduate (master's in materials/chemistry, skills in synchrotron techniques, X-ray diffraction methods, electron microscopes, spectroscopy, machine learning...) and it took me frickin 6 months to find a "good" job (underpaid in my opinion but whatever). Everywhere I keep seeing reposted job listings. Yeah, strong job market. I have seen the same jobs for several months now. Weird. The job market in the EU is just weird.

>>56617963
Uh huh. That is why company profits keep rising eh? Peak inflation coincided with peak earnings and peak profits. Price gouging at maximum. Maximum greed. Businesses hiked their prices +50%. Hell, my father's business hiked 70% just last year and profits have only gone up.
Inflation has always benefitted the upper classes since it is based on percentages. As such, the richer get richer.
Of course there is variance but I still maintain that inflation is good for the average wealth (not median)

>>56571294
Cutting of rates is already expected as can be seen in the projections by both the FED and ECB (FED's lapdog, if FED cuts you can be sure ECB does as well). I think they will cut 25bps at most next year and rates will still be held at 4%+ by end of next year.
But these pathetic rates have little to no effect on large and mega caps. Also, they can buy treasuries and offset losses. Also, most of their debts mature by 2028 or later.
This is why the astronomical unrealized losses by banks (BoA and JP morgan for example) are meaningless.

Small caps have gotten the axe real hard and are the most vulnerable to a high rate environment. But pretty much all companies that I see on the European markets have adapted well by giga-raising price (price gouging). Yes, typically cutting rates benefits smaller caps the most. But I will still stick to large caps only since they have stable and massive cash flows, smaller debts (relatively speaking), and have preferential treatments in terms of loans and rates.

I am a mumu simply because I all those doomer events that people spouted last year and this year simply haven't happened. Rates are still very low and hardly affect normies due to massive buffers (we've had zero or negative rates ever since 2015 so people have had loads of time to stack up massive economic buffers), employment is just fine, and wages are also up (enough for normies). This greedflation has been soundly accepted and companies have once again reported record profits. I am just fuckin done and therefore went all in on large caps last week and already am bigly up. I am not gonna fight this trend

>>56506811
Profits have come down a bit as a result of wage compensations but I imagine they will start going back up again as that's over and done with. Still, corporate profits are hovering near ATH values (literally look at the earnings which absolutely crushed both 2022 and expectations).
But as price gouging is coming down slightly since they can't keep blaming inflation, rates are entering the equation for smaller companies (not the big ones with most of the debt maturing in a long time), and consumer is flagged to become weaker next year, we might see profits peaking this year.

>>55788485
>Meanwhile inflation at +6%.
Welcome to reality, son. They are squeezing the middle class and the lower class dry while the upper mid class and above are enjoying a bountiful season. Since everything is percentage-based, the wage increases are negligible for the lower classes... PPI keeps decreasing so companies can maintain their insanely high profits and easily compensate for the "high" rates (3-4% laughable pathetic rates).
Plus, high inflation means state debt erasure.
Everybody in high positions desires inflation. They will fight tooth and nail to maintain this system and their high profits.
Sure, the inflation might eventually decrease to the goal of 2% (at least officially) but will we ever see lower prices? Nah, normies be too dumb, m8.
Sry for the rant but once again this piece of crap continent keeps pissing me off. I am this close to saying fugg id and moving to Switzerland

>>55779301
I don't think so actually. I think the market priced in rate hikes last year and now is pricing in the bullish inflation. I honestly don't think anyone is stupid enough to think they will be cutting rates anytime soon.
The high core inflation + low PPI has allowed companies to outdo inflation and squeeze us dry. Profits have risen by an insane amount. But they can't keep raising by much more anymore since it's difficult to justify and they risk losing customers.
The rates have a huge lagging effect and only now have started to affect profits. Coupled with the credit downgrade (and consequently a sell-off of AAA stuff by some investors), it could be a bit bearish.
Then again we are in the middle of a tech mania which could easily easily sustain this bubble and reach S&P 5000 by EOY. The US spending on tech has literally gone ballistic this and last year.

No, the rates will probably stay this way but the bullish outlook of the market can easily remain and can easily become even more bullish provided Bidenomics once again does something to screw us over

>>55718873
>>55718851
Wrong img, sorry m8. Lum has taken over my life

>>55676757
Prices are simply rising slower than before (still significantly higher than normal though but who cares about that?). Also, since inflation rate calculations include many different factors, we can have higher food inflation which can be outclassed by a decrease in electricity prices for example, giving the illusion of a lower inflation. It's all bullshit and falsified statistics anyway. Remember the famous quote about statistics m8: "the only statistics you can trust are those you falsified yourself". The single most based quote I've ever read. Never ever trust anything coming from a governmental body/agency.
>>55676758
Obviously, they are on fuckin repeat mode and have been for the past two years now. What do they even do? Like actually what do they do in their job? They keep saying the same things and haven't brought anything new to the table. Do they just drink coffee and sit around all day, talking about their hippie days? I would really like to know.
They will once again divert attention to "wage gains" and oh how the economy is affected by the fact that workers are greedy and demand money for their work... all the while companies are making gigantic fuckin profits because many have signed ZIRP contracts and get nice deals from the banks.
https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inflation-outlook-depends-on-how-corporate-profits-absorb-wage-gains