The Consumer Price Index (CPI) measures among other things, the cost of living for the average person in the United States. This index measures our rate of Inflation, Deflation, and Stagflation. Investors, bankers, and the government use this index in many major financial decisions.
I used this index as a gage to tell me when to invest in the bond market. In deflationary times like today, the bond market out performs the stock market. A deflationary economy may last 20 years. That is why the bond market enjoys long bull markets. When high inflation starts to decrease, stocks outperform bonds. That is why we had a long bull market in stocks from 1980 to 2007.
Here is a link that goes into detail about this index.
http://www.investopedia.com/articles/04/102004.asp#12817290826272&close
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