4 ms·
The CPI is not a good way to evaluate the value of the dollar. Especially not when discussing if rate hikes impact the stock market. And again: Look at decades
by mg 3y ago
The CPI is not a good way to evaluate the value of the dollar. Especially not when discussing if rate hikes impact the stock market.
And again: Look at decades, not at years. Assets are way more expensive these days than they were in 2008. The S&P 500 more than tripled. The Nasdaq 100 increased more than 7-fold.
The economy is like a large swimming pool. If an elephant jumps into one side of the pool (increase of M0), it won't lift the water level on the other side (whatever prices you look at) in a linear way immediately. It will cause complex waves. But when the dust settles, you see higher prices.
- dragontamer 3y agoSounds to me that CPI just destroys your argument so you want to discount it and/or ignore it. Here's another one: 1970s were correlated with growing monetary base (M0, M2, whatever) and incredible amounts of inflation. And yet, the stock market and other assets declined. These opinions of yours aren't really from economic data or analysis, but instead from vibes from some kind of blogger / website out there. The permabears or whatnot. I've seen opinions like yours all over the internet, but consistently they fall apart when the actual economic data is looked upon, as we are doing here. The only argument is to ignore economic data (like you're attempting to do with CPI).