This metric is at its lowest since 1992

Dear Reader, As you're prepping for Thanksgiving and working on your Christmas shopping, you've probably noticed that there aren't as many options on the shelf. This inventory shortage is primarily due to the ongoing supply chain issues we've been hearing about for several months. And one thing is becoming frustratingly obvious. Don't waste your time asking if there's any more inventory "in the back." According to the most recent Census data, the inventory to sales ratio is at its lowest level since the metric began to be tracked in 1992. The inventory to sales ratio is a metric used to determine how many months of inventory are on hand in relation to the sales for a month. For example, a ratio of 2.5 would indicate that retailers have enough stock on hand to cover two and a half months of sales. Pre-pandemic, supply chain levels had an average inventory to sales ratio of 1.47 before experiencing a significant drop-off to the current levels that hover around 1.09. Even though we're experiencing the inventory crunch when trying to purchase goods, economists agree that these low inventory levels present a massive economic opportunity. Michael Feroli, the chief economist for JPMorgan Chase, recently commented, "Most business sentiment gauges indicate the level of inventories is uncomfortably low, and we expect replenishing stocks could add 0.5%-pt to GDP growth next year. "The inventory rebuild should also bring an additional benefit for us consumers. Higher inventory levels mean more options for consumers. And with more options and excess inventory, businesses will be incentivized to run promotions and discounts to help clear out inventory. The potential tailwind from the inventory shortage could be the boost needed to help businesses secure that successful 4th quarter earnings result.

Andrew Graham Editor, Silver Ridge Market Report P.S. The guys over at Advantage Gold know there is a lot of misinformation out there when it comes to gold. That's why they've agreed to send you their book The Great Devaluation absolutely free, you don't even need to pay shipping and handling. If you are looking to protect your investments from a yet unforeseen event, it's worth the read.

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