4 ms·
If you look at TIPS bonds, consumer inflation (CPI) is not actually substantially higher over 5 or 10 years, if at all. The expected inflation rate is the same
by alexpetralia 6y ago
If you look at TIPS bonds, consumer inflation (CPI) is not actually substantially higher over 5 or 10 years, if at all. The expected inflation rate is the same tenor Treasury yield minus the TIPS.
- konschubert 6y agoConsumer prices and asset prices have decoupled. Most consumers don’t have direct access to cheap FED money and the trickle-down effects (startup boom) have had limited impact on average wages.
- alexpetralia 6y agoYes personally I would look at the rising CAPE as an indicator of asset inflation (too much capital chasing too few earnings).