Quote Originally Posted by dotcumdotinyou View Post
The problem with rising wages GFM is that it also increases costs to manufacturers and suppliers so they in turn put their prices up. So in reality the extra money in your pocket still buys the same or less, its a vicious cycle. And in normal times as wages increase so to does unemployment but because we have virtually zero migration that won't happen as much this time. Also with all the turmoil and hyped up recession talk in the news a lot of suppliers have taken the chance and increased prices to the point of gouging, glass has gone up 33% over the last year aluminium over 40%. Shipping charges and terminal fees have gone up over 50%.

It may be a bearish market JJ but with inflation and unemployment rising around the world the markets still have a way to go before hitting bottom, my smsf is cashed up but I'm not prepared to buy right now as I think there'll be more bargains in 6-12 months time.
I wouldn't call that a vicious cycle. It's simply every man for himself... If you don't jack up your price, your PPP will be swallowed up by the inflation. Gotta move with the times, not against it.

If I had to choose between seeing the price of everything going up and everyone getting a bigger pay check to keep up, vs prices staying the same but only a select few getting "wealthy", guess which one I would choose? Don't go calling me a Commie now, I just have a heart!

I wouldn't buy anything at the moment if I were you, we are nowhere near the bottom. Keep your eyes and ears peeled for news from the US tonight AEST. If you see 75 basis point rate hike being printed, sit back and watch the carnage unfold everywhere tomorrow.