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inflation in consumer goods might not be high, but financial assets have clearly inflated: a quick look at gold denominated SPY shows it.
by alcio 6y ago
inflation in consumer goods might not be high, but financial assets have clearly inflated: a quick look at gold denominated SPY shows it.
- H8crilA 6y agoWhy not TSLA/gold? That proves there is inflation! Or I know, BTC/USD, that clearly proves there's lots inflation and look at that bitcoin price is perfectly correlated with it! (I am only half-joking here, the point is that broad inflation is much much more important than some bull market in this or that asset class) On a more serious note a lot of commodities are looking really bullish, including some foodstuffs, and that's obviously not good news ...
- nivenkos 6y agoReal estate inflation is the real driver behind practical inflation all over the world though. Real estate bubble -> High deposits for house purchases -> High rents -> Effective inflation Most governments don't include real estate (or even rent payments) in their inflation calculations to keep it artificially low.
- H8crilA 6y ago> Most governments don't include real estate (or even rent payments) in their inflation calculations to keep it artificially low. Housing is > 40% of the US CPI: https://www.bls.gov/cpi/tables/relative-importance/2019.pdf https://www.bls.gov/cpi/tables/relative-importance/2019.pdf