RE:The coming consumer led "demand destructive" economic stormsAs you say, keep some powder dry, which this time around I have been cery disciplined but will take my chances....I added a bit more of GRA today with the tax loss period in the backdrop.
I remember back in 2000 when I just started my business, markets were pretty doom and gloom. Buy quality, take a chance on a few companies in industries that the world is transitioning to. Look for growth prospects and follow your research.
1student wrote: We note the current inflationary environment is a lagging indicator of previously expected and intentionally generated "economic expansion".
Infaltion, even at 8%+ in North America, told us that the long ago intended and "artificially generated" economic expansion, which had long ago been envisioned and ensured, was clearly successfully attained since at least 2009 (actually well before then).
We also understand that what the intentional, fully expected, successfully generated and clearly experienced 8%+ inflation within North America and the 10% inflation within Europe had not manage to do is to put a most serious and necessary dent in per capita consumer descretionary spending. Consumers were then still borrowing "cheap attained money" and spending their then cheaply attained credit like drunken sailors, this following the consecutive waves of the Covid-19 fashioned lockdowns.
Why am I mentioning the forestated information, you'd ask?
This is where companies like Martinrea International and their various global automotive manufacturers customers, global companies currently being serviced by such types of "dependent automotive parts and components manufacturers", would collectively be greatly impacted by various intended pejorative effects attributable to the very "remedies" having already been deployed, in order to bring down far too long allowed to remain unchecked North American and global economic inflation.
I would suggest that taking nearer to 2% borrowing rates to now upward of 5% to 6% consumer borrowing rates for mortages in less than a year and ramping up unsecured credit associated interest rate costs of servicing to 8%+ within the very same interval . . .
Suffice to say, not just automotive manufacturers and consequentially the very companies who manufacture automotive parts and components for such automotive manufacturers globally (e.g. Magna, Linimar, Martinrea and the list goes on and on) would be severely impacted by the "consumer demand destruction event" which is about to be unleashed during 2023 on the North American and European economies.
Clearly, what we are all briefly experiencing could be a wee bit of a reprieve, this before all high holy excrement is made to hit the fan for a prescribed interval, so to speak.
NOTE: This Canadian federal government's most senior political representatives are collectively and quite intentionally dragging their respective behind, as pertains to the Canadian federal government's expected provisioning of the absolutely necessary and "proportionately equal" government funding (i.e. proportinally equal to the circa 1.5 Trillion worth of cumulative U.S. Government EV's associated funding initiatives to be disbursed thus far) of the EV battery materials elements mining to finsished battery materials and battery cells manufacturing supply chain.
You'll now know why this Canadian Federal government political administration has been electing to keep proportionately most of it's powder dry and specifically not intending to fund smaller Canadian based companies before their "control" can be secured by or on behalf of certain selected global industries wide behemoths, i.e. preferred global "industrial titans" representing "friendly" and specifically "five eyes" constituent countries and/or "industrial titans" representing countries such as South Korea (SK maintains a free trade agreement with Canada), Japan, etc.
NanoXplore's Soroush Nazarpour &Co would do well to note that traditionally Federal Liberal Party led political government administration most senior representatives and thier minions always tell Canadian industry participants they are there to support them; whilst ensuring that following the intended delays certain companies would be "supported" straight into the arms of privately negotiated suitors.
NanoXplore representatives and Martinrea representatives can actually have confidence in Quebec's political leaders. Neither Mr. Nazarpour nor Mr. Wildeboer should believe they are actually being genuinely helped by a Liberal PartyMinister of innovation, Science and Industry.
It conceivable that Martinrea International may not outlast the coming storm occurring within Canada. I've suggested it before, I expect Martinrea to be taken over by a U.S (New York) operating suitor, along with many other trageted Canadian based corporations.
It wouldn't be the Russians or the Chinese who are coming; it's everbody else being invited to buy up certain soon made to be distressed Canadian wide industrial landscape situated assets, so to speak.