3 ms·

> there is too much money trying to pour into the market Keep in mind that inflation ran over 7% annualized in April [1]. [1] https://www.bls.gov/news.release

> there is too much money trying to pour into the market Keep in mind that inflation ran over 7% annualized in April [1]. [1] https://www.bls.gov/news.release/cpi.nr0.htm https://www.bls.gov/news.release/cpi.nr0.htm

philipallstar 5mo ago
Inflation is a measure of the cost of living. It's not got loads to do with large-scale, institutional investments.
- 9question1 5mo ago
  That depends. Inflation is a measure of the cost of living in terms of currency. It can be high either if goods and services required for living become scarce, or if currency supply increases. Currency supply increasing does affect asset prices.
  - philipallstar 5mo ago
    Yes, but they're not directly correlated. Of course events can affect them both! Going to war would both increase the cost of living and (some) asset prices would go way up. But that doesn't mean they should be measured together like that.
- JumpCrisscross 5mo ago
  > Inflation is a measure of the cost of living The faster your cash loses value, the stronger your incentive to trade it for something else. That something else can be financial assets. > It's not got loads to do with large-scale, institutional investments For investors, particularly retail investors, the consumer price index is most relevant. But for whatever it's worth, producer prices are up over 16% in April (7% excluding "foods, energy, and trade services," which jumped over 50% annualized) [1]. To be clear, I'm floating a hypothesis here. I have seen no evidence linking inflation to demand for these companies' shares. (If anything, it should be the inverse.) [1] https://www.bls.gov/news.release/ppi.nr0.htm https://www.bls.gov/news.release/ppi.nr0.htm
- thrawa8387336 5mo ago
  Inflation then is already higher. Cost of living is driven mostly by rent
Alive-in-2025 5mo ago
From that doc, prices went up 0.6% in one month, multiple by 12 get 7.2% annual inflation rate.
Auracle 5mo ago
The vast majority of that was fuel.
- JumpCrisscross 5mo ago
  > vast majority of that was fuel Everything else is up around 3% YoY. And if energy and transportation are up double digits, and producer prices are up double digits, other consumer prices will follow.
- themafia 5mo ago
  Yea and the cost of fuel has zero downstream effects on the economy.

philipallstar 5mo ago

Inflation is a measure of the cost of living. It's not got loads to do with large-scale, institutional investments.

9question1 5mo ago
That depends. Inflation is a measure of the cost of living in terms of currency. It can be high either if goods and services required for living become scarce, or if currency supply increases. Currency supply increasing does affect asset prices.
- philipallstar 5mo ago
  Yes, but they're not directly correlated. Of course events can affect them both! Going to war would both increase the cost of living and (some) asset prices would go way up. But that doesn't mean they should be measured together like that.
JumpCrisscross 5mo ago
> Inflation is a measure of the cost of living The faster your cash loses value, the stronger your incentive to trade it for something else. That something else can be financial assets. > It's not got loads to do with large-scale, institutional investments For investors, particularly retail investors, the consumer price index is most relevant. But for whatever it's worth, producer prices are up over 16% in April (7% excluding "foods, energy, and trade services," which jumped over 50% annualized) [1]. To be clear, I'm floating a hypothesis here. I have seen no evidence linking inflation to demand for these companies' shares. (If anything, it should be the inverse.) [1] https://www.bls.gov/news.release/ppi.nr0.htm https://www.bls.gov/news.release/ppi.nr0.htm
thrawa8387336 5mo ago
Inflation then is already higher. Cost of living is driven mostly by rent

Alive-in-2025 5mo ago

From that doc, prices went up 0.6% in one month, multiple by 12 get 7.2% annual inflation rate.

Auracle 5mo ago

The vast majority of that was fuel.

JumpCrisscross 5mo ago
> vast majority of that was fuel Everything else is up around 3% YoY. And if energy and transportation are up double digits, and producer prices are up double digits, other consumer prices will follow.
themafia 5mo ago
Yea and the cost of fuel has zero downstream effects on the economy.