OOH …Here’s One Thing
Run Run Rudolph
by Jim Johnsen,
Managing Director, Johnsen, Fretty & Company
I was standing around after a paddle (or as some say platform tennis) match the other day listening to a bunch of wall streeters jabber about the incredibly good but incredibly scary state of the financial markets. The masters of the universe seem to know everything. The one stat that someone spewed that I liked was the fact that over history, the entire market capitalization of the stock market has run somewhere around 0.8 times GDP. It is currently running at about 3 times that. Could the stock market be overvalued? Who knows, but as one other sage dude in the group said, “what else are you going to do with your money, stick it in your mattress?” (FWIW I did not respond with “want to buy a billboard.)
There was a nugget of gold in this useless banter though, that I thought I would share. The head cheeze at some gazillion dollar real estate hedge fund started waxing eloquent about the inflation he is seeing in the rents in his “multi-family” residential portfolio. As he put it, “we are delivering year over year, double digit rent increases across the portfolio.” Okay for us mainstreeters, what is he saying? He is saying that if you are a young family in Minneapolis living in a 2 bedroom, your landlord just told you your rent went from $2,200 per month to $2,530. Doesn’t sound like a lot? When you are grossing $3,200 per month my guess is it feels like a gut punch.
Okay Johnsen, what’s the point? I’ll get right to the point since I have another paddle match in 15 minutes and then one of my favorite outdoor friends decided to throw a Christmas “darty” this year and I’m no James Joyce (by the way he used to call Guinness the wine of the country). The point is, even though the politicians and the media would lead you to believe that this little thing going on is just a blip called temporary inflation, there is a damn good chance they’re lying and this thing is here to stay. That big mac may be $12 before you know it.
Awesome Johnsen, thanks for the macroeconomic lesson but who gives a rat’s tootie. Wake up man. When’s the last time you adjusted your rate card (if you still have one of those things)? What’s your price increase strategy for 2022? If there was ever a moment in history…it’s right now. Are you ready?
Your welcome…and more importantly, Buon Natale.
ps – this never gets old.
Run Run Rudolph Inflation.
jfco.com
Securities transacted through StillPoint Capital Member firm FINRA/SiPC
Help us Help You by keeping the only Independent Voice for OOH.
If you read OOH Today via LinkedIn, thank you To ensure you never miss a post
and keep unconstrained speech for the OOH/Billboard Industry,
click here to ⇒Subscribe to OOH Today
- Advertisement -
