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S&P 500 is down 7% this year and inflation is running at 8%. Those compound so folks are seeing 15% declines in wealth in 3 months. The Fed can only choose on
by nostromo 5y ago
S&P 500 is down 7% this year and inflation is running at 8%. Those compound so folks are seeing 15% declines in wealth in 3 months.
The Fed can only choose one of those "problems" to solve -- let asset prices fall and tame inflation, or prop up asset prices and let inflation run wild.
- tommiegannert 5y agoThat's an odd way of using inflation numbers. 8% is a YoY change. What makes you able to sum that up with a 3-month metric of SPX to yield anything useful? It's 0.6% and 0.8% MoM so far [1], so if we're simply summing up an approximation for YTD and extrapolating to March, I'd suggest -(7% + 0.6% + 0.8% + 0.8%) for -9%. [1] https://tradingeconomics.com/united-states/inflation-rate-mom https://tradingeconomics.com/united-states/inflation-rate-mo...