$800 then will be worth about $700 now
why is the public so unable to detect price inflation?
its newest locations are in housing, mortgage bonds, trez bonds
and in a BIGGGG way
(not to forget its many constant places like property taxes, insurance costs, food, entertainment, tuition, energy, heating, electricity, gasoline, etc)
yday the markets were being told by pundits that the Fed was winning the battle for inflation, as CPI was up 0.3%, higher than expected
the entire bond maturity curve sold off
Maturity Yield 6/17 vs 06/16
3 Month: 0.78 0.76
6 Month: 0.82 0.79
2 Year: 1.21 1.14
5 Year: 2.21 2.10
10 Year: 3.26 3.17
30 Year: 4.29 4.22
the investoriat illiterata seems not to realize that as inflation kicks back into common mainstream prices, especially production costs, bonds will sell off and interest rates will rise
factor that into the dumbfuch Fed Model
stocks will fall, real estate will fall, bonds will fall
not much at first, more later
/ jim |
