Supervizion
From Wall of Sound to Wall of Worry. The instruments were all playing on Wall Street in a Wall of Sound. For the past months there have instead been talks of a Wall of Worry… Some points in this… | SUPERVIZION
From Wall of Sound to Wall of Worry. The instruments were all playing on Wall Street in a Wall of Sound. For the past months there have instead been talks of a Wall of Worry… Some points in this Wall of Worry we are hearing: · AI technology has created projections for future earnings for companies that are highly uncertain estimates. Productivity gains from AI will come but are yet to be realized on a broad front. There are extreme levels of capital expenditures among certain companies due to AI, will there be enough ROI? Some investments are made in a maze across companies that makes analysis harder. · A large portion of USA consumer spending has come from wealthier consumers while other consumers have held back spending. If the wealthy’s spending is removed there is not much cushion. · Job market with layoffs. Companies holding back hiring, especially younger people. Even college graduates have more difficulties in finding jobs. · Uncertainties on trade tariff policy decisions, their implementation, and maintenance. · Wars in Ukraine and Iran. Prices for oil and natural gas are elevated and uncertain. Could drive up inflation. · New Federal Reserve chair is inbound. Priorities underpinning rate policy decisions are uncertain. Some conditions for stagflation present, which would make it harder to benefit the economy uniformly from Fed policy decisions. · USA government’s debt-to-GDP ratio is about 120 % and Congressional Budget Office expects it to increase. When coupled with higher interest rates, it raises concern among observers. “Wall of Sound” is a music recording technique that layer multiple instruments playing the same parts with echo and reverb to produce a dense, powerful, and orchestral mass of sound. The originator of Wall of Sound, Phil Spector, got into a personal Wall of Worry later in life.
