David Rosenberg Supply Quotations

So many clients are telling us that we are just plain wrong and there is inflation everywhere. But ... the bulk of these complaints come from folks who have kids in college ... Prices set according to supply and demand are flat or falling for the most part.

If the divergence between sales and inventories continues, the inventory-to-sales ratio will breach the critical five months' supply threshold by year-end, ... Price action is sure to follow.

Katrina's effects are being felt nationally-on the nation's transportation arteries, supply chains, chemical plants, airlines, leisure/hotels, gasoline prices everywhere and retailing. The commercial impact is widespread.

With affordability at a 20-year low, we will be keeping a close eye on the inventory numbers in 2006. Demand has rolled over just when we're seeing supply peak. That's a prescription for a price adjustment.