| When inflation spiked last year, companies responded by raising their prices. As price pressures started to ease, companies opted to prioritize pricing over volume. The move made perfect sense, says Samuel Rines, Managing Director at Corbu, LLC, as pricing helped maintain margins. It’s a strategy he has dubbed “price and margin” (PAM). And as input costs retreated and prices stayed steady, the money fell to the bottom line. It’s one of the things that kept him bullish in the face of widespread bearishness early this year. He also sees several things simmering beneath the surface that suggest the economy may not be as weak as many believe. All that and more are covered in this week’s conversation with Sam. You can learn more about Sam, his work, and his book here: https://www.linkedin.com/in/samuelerines/ Stay informed on the big trends by subscribing to Global Macro Update here: https://www.mauldineconomics.com/global-macro-update?utm_campaign=JM-499&utm_content=JM499Z8&utm_medium=GM&utm_source=ytb Please stay in touch by following me on Twitter @EdDAgostino: https://twitter.com/EdDAgostino Time stamps: 0:37 The power of price-over-volume (POV) and price-and-margin (PAM) strategies. 5:16 POV and PAM are evolving into growth models that will frustrate the Fed. 6:38 Why the expected economic impact of interest rate hikes has yet to happen. 12:35 Who benefits at the end of a rate hiking cycle? 14:00 What’s ahead for the services and manufacturing sectors will surprise many. 15:17 The outlook for energy and commercial real estate. 20:17 Thematic thinking and the model portfolio. 24:20 The significance of inventory in a post-COVID world. |
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
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