MINNEAPOLIS ( Stockpickr) -- There is a fundamental shift taking place in the economy. Huge losses on personal assets, including real estate and housing, combined with a challenging job market has changed consumer behavior. Budgets are tight, and there is a renewed emphasis on savings.
The result of this very significant change is an emphasis on bargains and price. There are many loud voices in the financial world concerned about inflation based mainly on current easy monetary policy. The fallacy of that argument is almost amusing. Simply take a look around and you will see the masses working hard to find bargains at every turn.
When consumers don't spend, prices will be hard-pressed to increase. The pressure on prices for most goods and services is tremendous at the moment. Last month, import prices fell thanks to lower fuel costs. Food and materials prices fell as well.