Womack Investment Advisers

  Record prices for used cars and trucks were the biggest contributor to inflation last month, according to the government’s Consumer Price Index report.   Prices for used vehicles surged 7.3% just last month, following an even bigger 10% gain in April.   Why are the prices of used vehicles skyrocketing?    In short, there are more people buying cars than there are cars in the market.   New car trade-ins are usually the biggest source of used cars, but supply chain disruptions, especially a widespread of specialty semiconductors used by auto manufacturers, have limited availability of new vehicles—causing prices of scarce used vehicles to catapult higher.   The Manheim Vehicle Value Index, a widely-followed industry yardstick shown in the chart, was described by industry observers as “shocking”.   (Chart from Manheim) Best regards,  Womack Investment Advisers, Inc. WOMACK INVESTMENT ADVISERS, INC. Oklahoma / Main Office: 1366 E. 15th Str...

come here Rona! Heel, Covi! Prior to the pandemic, The Economist reported Euromonitor anticipated, “…the number of pet cats worldwide to grow by 22 percent between 2018 and 2024, compared with 18 percent for dogs. Cats are better suited to apartment living than dogs, so they are more at home in the densely populated, fast-growing cities of Asia.” Then, the pandemic spurred a global pet and pet industry boom. In 2020, Americans spent $103.6 billion on their pets, reported the American Pet Products Association : Food and treats:                                              $42.0 billion Veterinarian care and products:                   $31.4 billion Supplies and medicines:                                $22.1 billion Other services:    ...

  Pulling the economy out of the shed. If you’ve ever stored tools or machinery in a shed or garage for an extended period of time, you know they often need some care and repair to function properly. The same appears to be true of the pandemic economy. Economic growth in the United States is on the rebound. The latest report shows real gross domestic product, which is the value of all goods and services produced in our country, was up 6.4 percent annualized during the first quarter of 2021, an improvement from 4.3 percent in the fourth quarter of 2020. Also, pandemic restrictions have been lifted. Americans have begun to spend more and save less, and there is high demand for goods and services. The economy appears to be primed for stronger growth, but there are some glitches in the system – namely labor and supply chains. For the second month in a row, the May U.S. employment report showed fewer jobs gains than anticipated, although the unemployment rate dropped from 6.1 pe...

  As COVID-19 vaccination efforts continue here in North America, how exactly are we doing relative to the rest of the world?   It turns out, actually pretty well.   North America has now reached approximately 60% of its population vaccinated, followed closely by Europe at 48.5% of its population.   Surprisingly, the Asia-Pacific region has one of the lowest vaccination rates in the world.    Analysts report that skepticism over the newly developed vaccines seems to be the common reason for hesitance everywhere, but even more so in Asia where fairly effective containment in the very early stages of the Covid-19 crisis seems to have led to a lower current sense of urgency.   Africa, at less than 5%, is reportedly stymied by a triple-whammy of suspicious populations, under-developed distribution networks and widespread shortages of vaccines.  Best regards,  Womack Investment Advisers, Inc. WOMACK INVESTMENT ADVISERS, INC. Oklahoma / Main Office...

Are we at a tipping point?   One side effect of the pandemic was a collapse in demand for oil, which led to “the largest revision to the value of the oil industry’s assets in at least a decade,” reported Collin Eaton and Sarah McFarlane of The Wall Street Journal .   Last week brought another reckoning for big oil as a court ruling and shareholder influence made it clear companies need to revisit their strategies for emissions reductions and clean energy. Here’s what happened: Do it faster. In the Netherlands, a court ruled an Anglo-Dutch oil producer would need to lower its emissions by 45 percent from 2019 levels by 2030, far more quickly than the company had intended.   “Analysts said the…ruling could set a precedent for similar cases against the world’s biggest corporate polluters, which may now face related lawsuits and be forced to overhaul their business models,” reported Derek Brower and Anjli Raval of Financial Times .   Change direction. For weeks, ...

  Despite the Fed’s insistence that the present jump in inflation readings is “transient” and “temporary”, indications of widespread inflation are becoming so numerous as to be overwhelming. Deutsche Bank maintains a data series it calls the “Inflation Data Surprises Index”, which monitors unexpectedly-high or –low inflation reports across the economy.   The current readings are the highest in the 20-year history of the index.   Deutsche Bank strategist Jim Reid described the last 10 data points as “almost off the chart”. Best regards,  Womack Investment Advisers, Inc. WOMACK INVESTMENT ADVISERS, INC. Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK  73013 California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122 Phone (405) 340-1717 - Toll Free (877) 340-1717   Website:   www.womackadvisers.com Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in O...