Market Commentary

Shortages and Prices

shortages

We are seeing shortages in several areas of our economy. Frist chips for the auto industry are in short supply causing carmakers to park incomplete vehicles. There was a fire in a chip factory in Tokyo that primarily made chips for autos and it will not be back in full production for another month or two. That is a problem that should work itself out by year-end. However, there are shortages of lumber for the building industry that might take longer. Lumber mills ceased production last year as Covid spread worldwide expecting a housing slump. That did not happen, and they are trying to catch up in a surging demand environment.

Prices of everything are going to rise.