Thanksgiving Got More Expensive.
Did you notice these prices increases?
GM friends and investors.
Happy Thanksgiving. To all those who were bold enough, happy Black Friday shopping to you as well. (Inflation sucks)
Highlights:
FTX’s EX-CEO letter to employees.
China and India are picking up the slack.
Thanksgiving prices compared to 2021.
America’s top 5 reasons for NOT shopping in-store.
The S&P 500
The markets were a mixed bag this week.
Talks from the US and allies about capping the price of Russian oil sent the energy sector mostly red.
As for the rest of the market, we are all patiently waiting for any sign that inflation has eased and that the Federal Reserve will change its trajectory in rate increases.
Although we saw inflation come down more than expected, it was juxtaposed by the low employment numbers that came out later in the week.
According to the Fed, unemployment needs to reach about 5% for inflation to cool down enough to reach the benchmark of 2%.
Thanksgiving Prices, Then vs. Now
6lb turkey: $28.94
up 21%
14-ounce bag of cubed stuffing mix: $3.88
up 69%
Two frozen pie crusts: $3.68
up 26%
Half pint of whipping cream: $2.24
up 26%
1lb of frozen peas: $1.90
up 23%
One dozen dinner rolls: $3.73
up 22%
The average increase in these holiday foods was 31% compared to prices in 2021.
This shows the gouge that US consumers have taken in their budget even since last year.
Picking up the Slack
China and India are both picking up some serious slack in the face of global growth.
The world may be lucky enough to avoid a global recession if the numbers we are seeing come true.
India is projected to have the world’s second-highest growth rate at 6.6% in 2022
China’s economy is predicted to grow by 3.3% this year, followed by 4.6% in 2023
The US is expected to grow by just 1.8% in 2022 and only 0.5% in 2023.
China and India haven’t had to tighten policy quite as hard as the US, so seeing these numbers is not surprising.
The real test will be in the next five years when most of the dust from inflation settles.
FTX Letter to Employees
Mr. Sam Bankman-Fried sent a letter to his ex-employees on Tuesday.
We got the best highlights from it here for you.
“Hi all—
I feel deeply sorry about what happened. I regret what happened to all of you. And I regret what happened to customers. You gave everything you could for FTX, and stood by the company—and me."
It went on for a while, explaining how he could have prevented the collapse. He even thinks that he could have stopped it hours before the bankruptcy.
“We likely could have raised significant funding; potential interest in billions of dollars if funding came in roughly eight minutes after I signed the Chapter 11 docs.”
“I lost track of the most important things in the commotion of company growth. I care deeply about you all, and you were my family, and I’m sorry."
The funniest part I have found is that an FTX employee told CNBC that it’s “a little too late."
Sam was always great at PR, but if people don’t have their money, they don’t care what you have to say.
BONUS:
America’s top 5 reasons for NOT shopping in-store on Black Friday.
#1. Too many crowds (60.8%).
#2. Health/safety concerns (57.1%).
#3. Not worth the hassle (48%).
#4. Long lines (40%).
#5. Better online deals (25%).
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