Friday, December 31, 2021

Here's two charts to watch in 2022

Dear Reader,

Let's wrap up 2021 with a look towards the future.

Here are two charts and why I think they show a promising and exciting outlook for 2022.

Job Openings: The BLS' Job-Opening survey for October showed a mind-blowing 11.03 million openings. If all these jobs were to be filled, The United States could easily pass past employment records. Additionally, this is promising for two reasons. 1. There's an obvious need for workers, or employers wouldn't be posting jobs as available. 2. As these jobs become filled, spending capacity increases, which means increased levels of economic activity.

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Inventory: The country saw inventory levels spike during the onset of the pandemic as a result of people halting their purchases during the March 2020 lockdown. Since then, business inventory levels have been slightly depressed, which has hindered sales and contributed to inflation. But businesses everywhere have adapted, and it looks like we might finally have shelves and stockrooms replenished.

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One thing to take away from both of these charts is that there's a lot of demand that has yet to be recognized in the economy.

And I think 2022 is shaping up to be that year.

Here's to a safe, happy, and prosperous 2022.

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Andrew Graham

Editor, Silver Ridge Market Report

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