The Next 10 Years: Who Benefits From Fixed Supply-Chains?
If you own stocks, this is very important
Housekeeping: Regardless of its impact on inflation (marketing ploy for polling purposes), the Inflation Reduction Act (IRA) portends significant seismic shifts in how America will do business going forward. JPM lists almost 200 companies and the effect these changes will have on them. One way to weather whatever is coming financially is to have the right portfolio mix1. It should be read.
Market Rundown:
Good Morning. The dollar is up 54 bps. Bonds are weaker and the inversion is slightly less. Stocks were up and are now down about 75bps on average. Gold has clawed back from down $8 to down $3 now. Silver is down 11 cents. Crude is up 14 cents. Natural Gas is unchanged. Crypto is down 2% again. Grains are mixed with Soy down a little.
German PPI has risen from 37.2% in July to 45.8% in Aug yoy, the highest monthly increase ever and since records began 73 years ago. Fed Conference tomorrow.
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The Next 10 Years: Who Benefits From Fixed Supply-Chains?
We are witnessing the reverse of the 1970s in policy terms. The US outsourced industry then. Now we are incentivizing on-shoring of it. There will be big winners and big losers.
The report details what industries benefit and which do not from the tax changes and subsidies recently passed.
This act is the codification of what we’ve been going on about for months— Mercantilist policies in response to a fragmenting world. Like it or not, this is our path. We think this is very important for people seeking portfolio guidance for the next generation.
In this report, they discuss key trends and potential implications with input from JPM Stock Analysts for the IRA and CHIPS Act.
We suspect portfolios will shift from this significantly over time and whatever comes next in the US attempt to onshore industry. Several industries benefit greatly. Multinationals do not. Domestic supply chain development is key to this act.
We’ve also excerpted our June analysis of this event in pdf form for comparison as well.
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