Consumer cash buffer dwindling

There is an interesting correlation between inflation and Savings. Inflation generally is more demand than product. Demand requires ability and that ability is cash.

The dwindling cash reserves puts pressure on corporations to compete with fewer buyers causing the prices to drop.

The housing market on the other had has low inventory and high prices.

Existing home sales fell 3.3% in June. Y/Y down 18.9%. Inventory is half the levels we saw in 2019, a year that was already tight. Homeowners with low interest rates or own their home outright are the artifact of this low inventory.


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