The Consumer Price Index (CPI) is a measure of inflation and you should be aware of the adjustments it makes to accurately interpret the measure. It uses "owne

The Consumer Price Index (CPI) is a measure of inflation and you should be aware of the adjustments it makes to accurately interpret the measure. It uses "owner equivalent rent" instead of housing prices and makes substitutions for example. Rob Arnott poked fun at the index a few years ago when they substituted chicken for beef. It's incredible to reflect on how different the macro landscape is now compared to the last time inflation was this high. In 1984, inflation was 4%, the long bond yield was 14%, and the cyclically adjusted priced to earning ratio was 10. Now, the long bond yield is 2.3% and the CAPE is 37.4. Real long bond yields (nominal yield minus inflation) have gone from 10% in 1984 to -2.7% now. The yield on Treasury Inflation Protected Securities is negative, see the government website: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield https://www.treasury.gov/resource-center/data-chart-center/i...