6 ms·

It's not that Apple has grown that much in value, but rather the US dollar has become more worthless. Even gold is up nearly 20% since May.

nemo44x 6y ago
It's good news as the USD has been very overvalued for awhile. Was under valued 8-10 years ago but would be nice to see it lose some more value, increase USA export competitiveness, and also USA listed companies that report in USD and make a lot of business overseas will see a nice bump in revenues by virtue of exchanging more valuable EUR/GBP/etc into more USD than they have been able to recently.
fumar 6y ago
Do you have a handy dataset tracking US inflation?
- jeffbee 6y ago
  It's not inflation as such, but look at the exchange rate between CHF/USD or EUR/USD. USA is a failed state moving forward on momentum. You can expect the currency to crash after Trump refuses to leave office.
  - mpweiher 6y ago
    > EUR/USD. EUR is up against USD for the last 5 years or so, by a fairly small amount (~10% max). It is down against the USD over the last 10 years, by a larger amount (~20%). 10-20% is not much when it comes to currency fluctuations. When we were in the US in the 80s, USD/DEM went from around 1.70 to 3.50, so 2x fluctuation.
- TuringNYC 6y ago
  Inflation is a tricky topic because it all depends on what you measure. Multiple government measures of inflation are almost disingenuous because they don't measure some key items. Inflation is fairly low when it comes to sustenance foods, cars, telecom, and technology -- however, that is not the story for things like: fish, fresh produce, textbooks, healthcare, rent, home prices, executive MBAs, some imported goods. It gets even more complicated. Some things cost one for some people and another for others -- e.g., college tuition has skyrocketed if you don't get a scholarship/aid but is flat or down if you do get scholarship/aid
- justinzollars 6y ago
  M2 Money Stock by the Fed: https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
typest 6y ago
Examining the price of coffee I buy every day, it hasn't risen. Do you predict it will? Should this take awhile, or will it happen pretty soon?
- chii 6y ago
  may be coffee demand hasn't changed, and if it increases, the production can keep up and thus the price stays the same. Asset prices go up, because you cannot create more asset, but more people want it.
  - boring_twenties 6y ago
    I bet coffee demand has gone way down. For many people, it was just an excuse to take a break at the office.
- cmpolis 6y ago
  have you looked at real estate prices, healthcare, education - inflation and money supply changes do not impact every asset at the same time and by the same amount
- hjnilsson 6y ago
  Since the cost of making that cup is all domestic (labor, rent, marketing etc. the beans are maybe 1% of the cost), it will not change. Imported products may become more expensive though.
  - jmercouris 6y ago
    A lot of coffee in the US is imported.
- tobyhinloopen 6y ago
  I’m sure the price of your coffee will rise soon. Better buy now while prices are low and HODL until they’re crazy high, and dump all. Coffee is here to stay and will he THE truly anonymous and untraceable currency of the future.
Yhippa 6y ago
> but rather the US dollar has become more worthless What do you mean by this and how does one follow the other? I genuinely want to know. I'm unfamiliar with this concept.
- randomdata 6y ago
  Inflation is the term you may be more familiar with. As availability of currency expands and becomes less valuable, the price of things goes up to maintain value parity. In particular, right now money is being printed to ease the effects of COVID-19 issues, which is causing a large spike in prices as a form of inflation. To complicate matters, though, inflation is normally thought of as CPI; a measure of what people are spending on consumable items. Things like stocks, housing, and other assets that are jumping in price are not consumable goods and services. As such we try to avoid using the term inflation for this phenomena, but the principle is the same. Modern monetary policy seeks to try and keep that added money off of "Main Street", so that your groceries and gasoline aren't skyrocketing in price, but ultimately the money has to go somewhere, and that somewhere is "Wall Street".
  - milkytron 6y ago
    > Things like stocks, housing, and other assets that are jumping in price are not consumable goods and services. As such we try to avoid using the term inflation for this phenomena, but the principle is the same. I believe the term for this is "asset inflation", which is just a different form of inflation.
    - randomdata 6y ago
      You are quite right, but the use of inflation carries some emotional baggage being associated with CPI, and thus I would suggest that the term "asset inflation" is avoided in general conversation.
- jameslk 6y ago
  The US dollar is just a type of asset (i.e. of the cash asset class). I'm proposing that it's become less valuable compared to other types of assets such as specific stocks like Apple's, gold, etc. I believe this is due the effects of the Federal Reserve's actions of injecting more US dollars into the economy recently (aka money printing). As more US dollars are created from thin air, other asset classes naturally increase in value, or the US dollar decreases in value, whichever angle you want to look at it from. This is simply called inflation. Often times the Consumer Price Index is referenced as the source of truth on inflation, especially when the Fed makes its decisions on adding/removing money into the economy[0]. But the CPI doesn't track every type of asset such as stocks or gold, since these aren't things the Fed is trying keep the US dollar stable with as part of its dual mandate[1]. Price fluctuations haven't happened evenly across asset classes just because of the way COVID-19 has had effects on various parts of the economy. Not all stocks have increased due to negative effects of COVID-19 on certain types of businesses, not all real estate has climbed due to people moving around during COVID-19, etc. 0. https://en.wikipedia.org/wiki/Core_inflation https://en.wikipedia.org/wiki/Core_inflation 1. https://www.investopedia.com/articles/investing/100715/breaking-down-federal-reserves-dual-mandate.asp https://www.investopedia.com/articles/investing/100715/break...

nemo44x 6y ago

It's good news as the USD has been very overvalued for awhile. Was under valued 8-10 years ago but would be nice to see it lose some more value, increase USA export competitiveness, and also USA listed companies that report in USD and make a lot of business overseas will see a nice bump in revenues by virtue of exchanging more valuable EUR/GBP/etc into more USD than they have been able to recently.

fumar 6y ago

Do you have a handy dataset tracking US inflation?

jeffbee 6y ago
It's not inflation as such, but look at the exchange rate between CHF/USD or EUR/USD. USA is a failed state moving forward on momentum. You can expect the currency to crash after Trump refuses to leave office.
- mpweiher 6y ago
  > EUR/USD. EUR is up against USD for the last 5 years or so, by a fairly small amount (~10% max). It is down against the USD over the last 10 years, by a larger amount (~20%). 10-20% is not much when it comes to currency fluctuations. When we were in the US in the 80s, USD/DEM went from around 1.70 to 3.50, so 2x fluctuation.
TuringNYC 6y ago
Inflation is a tricky topic because it all depends on what you measure. Multiple government measures of inflation are almost disingenuous because they don't measure some key items. Inflation is fairly low when it comes to sustenance foods, cars, telecom, and technology -- however, that is not the story for things like: fish, fresh produce, textbooks, healthcare, rent, home prices, executive MBAs, some imported goods. It gets even more complicated. Some things cost one for some people and another for others -- e.g., college tuition has skyrocketed if you don't get a scholarship/aid but is flat or down if you do get scholarship/aid
justinzollars 6y ago
M2 Money Stock by the Fed: https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2

typest 6y ago

Examining the price of coffee I buy every day, it hasn't risen. Do you predict it will? Should this take awhile, or will it happen pretty soon?

chii 6y ago
may be coffee demand hasn't changed, and if it increases, the production can keep up and thus the price stays the same. Asset prices go up, because you cannot create more asset, but more people want it.
- boring_twenties 6y ago
  I bet coffee demand has gone way down. For many people, it was just an excuse to take a break at the office.
cmpolis 6y ago
have you looked at real estate prices, healthcare, education - inflation and money supply changes do not impact every asset at the same time and by the same amount
hjnilsson 6y ago
Since the cost of making that cup is all domestic (labor, rent, marketing etc. the beans are maybe 1% of the cost), it will not change. Imported products may become more expensive though.
- jmercouris 6y ago
  A lot of coffee in the US is imported.
tobyhinloopen 6y ago
I’m sure the price of your coffee will rise soon. Better buy now while prices are low and HODL until they’re crazy high, and dump all. Coffee is here to stay and will he THE truly anonymous and untraceable currency of the future.

Yhippa 6y ago

> but rather the US dollar has become more worthless What do you mean by this and how does one follow the other? I genuinely want to know. I'm unfamiliar with this concept.

randomdata 6y ago
Inflation is the term you may be more familiar with. As availability of currency expands and becomes less valuable, the price of things goes up to maintain value parity. In particular, right now money is being printed to ease the effects of COVID-19 issues, which is causing a large spike in prices as a form of inflation. To complicate matters, though, inflation is normally thought of as CPI; a measure of what people are spending on consumable items. Things like stocks, housing, and other assets that are jumping in price are not consumable goods and services. As such we try to avoid using the term inflation for this phenomena, but the principle is the same. Modern monetary policy seeks to try and keep that added money off of "Main Street", so that your groceries and gasoline aren't skyrocketing in price, but ultimately the money has to go somewhere, and that somewhere is "Wall Street".
- milkytron 6y ago
  > Things like stocks, housing, and other assets that are jumping in price are not consumable goods and services. As such we try to avoid using the term inflation for this phenomena, but the principle is the same. I believe the term for this is "asset inflation", which is just a different form of inflation.
  - randomdata 6y ago
    You are quite right, but the use of inflation carries some emotional baggage being associated with CPI, and thus I would suggest that the term "asset inflation" is avoided in general conversation.
jameslk 6y ago
The US dollar is just a type of asset (i.e. of the cash asset class). I'm proposing that it's become less valuable compared to other types of assets such as specific stocks like Apple's, gold, etc. I believe this is due the effects of the Federal Reserve's actions of injecting more US dollars into the economy recently (aka money printing). As more US dollars are created from thin air, other asset classes naturally increase in value, or the US dollar decreases in value, whichever angle you want to look at it from. This is simply called inflation. Often times the Consumer Price Index is referenced as the source of truth on inflation, especially when the Fed makes its decisions on adding/removing money into the economy[0]. But the CPI doesn't track every type of asset such as stocks or gold, since these aren't things the Fed is trying keep the US dollar stable with as part of its dual mandate[1]. Price fluctuations haven't happened evenly across asset classes just because of the way COVID-19 has had effects on various parts of the economy. Not all stocks have increased due to negative effects of COVID-19 on certain types of businesses, not all real estate has climbed due to people moving around during COVID-19, etc. 0. https://en.wikipedia.org/wiki/Core_inflation https://en.wikipedia.org/wiki/Core_inflation 1. https://www.investopedia.com/articles/investing/100715/breaking-down-federal-reserves-dual-mandate.asp https://www.investopedia.com/articles/investing/100715/break...