The Inflation Debate is Obviously Over – CPI is Highest in 40 Years
If you look back on our posts over the last two years we have discussed why inflation might become a concern and related matters since 2020. It has happened, February CPI at 7.9% is the highest since 1982 and it may grow higher. What may turn out to be transitory is our commitment to lowering…
Continue Reading The Inflation Debate is Obviously Over – CPI is Highest in 40 Years
Let’s get real, even transitory “high inflation” can be painful
A couple of points that I believe should be emphasized in the discussion about transitory high inflation are that these price increases are likely permanent, and even transitory high inflation can materially affect a person’s standard of living. After the arbitrary time period called “transitory” when we have the arbitrary price increases called “high inflation”,…
Continue Reading Let’s get real, even transitory “high inflation” can be painful
The inflation risk to a traditional 60/40 “balanced” portfolio is Real
A typical 60% equity/40% fixed strategy has done well in conjunction with stable or declining inflation. But what about even a mild increase in inflation? That has been quite different. Michael Ashton, Director of Research at Real Asset Strategies, has some key insights into why you might want to consider adding inflation related investments to…
Continue Reading The inflation risk to a traditional 60/40 “balanced” portfolio is Real
Gasoline and Headline Inflation
Headline deflation is likely headed our way in the short term but not necessarily just because of the recession. Headline CPI tracks gasoline pretty well.
M2 Velocity at Record Lows
Could it go lower? Sure…and it better if M2 keeps skyrocketing. That is if we want to avoid much higher inflation.
Record Highs! …in money growth.
The last high? About 45 years ago in 1976. Can you see that little bump in money stock during the ’08 GFC?
Last Time Was Different
April 13, 2020 Last Time Was Different Michael Ashton, Director of Research, Real Asset Strategies They say that the four most dangerous words in investing/finance/economics are “This time it’s different.” So why worry, the thinking goes, about massive quantitative easing and profound fiscal stimulus? “After all, we did it during the Global Financial Crisis and…