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Inflation indices do include rent and real estate. Housing costs is the single largest component in CPI. Equities have had a gigantic bull market since an inc
by QuesnayJr 7y ago
Inflation indices do include rent and real estate. Housing costs is the single largest component in CPI.
Equities have had a gigantic bull market since an incredible low after the financial crisis. Of course it costs significantly more to buy at the top of the market than at the bottom.
- TooCreative 7y agoRent and real estate are artificially low because of rent control. In a free market, the value decrease of money would be more visible compared to these assets. Calling the prise increase in equities a "bull market" does not change the fact that the prise increased.
- QuesnayJr 7y agoCPI includes owner-occupied housing as well, not just rent. If you are going to define bull markets as inflation, then you are ruling out the possibility that the economy can ever just do well. We had a horrible crash a decade ago. In the last couple of years, the economy has done well with record low unemployment. Of course equity prices went up.