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Technology Stocks : Dell Technologies Inc.
DELL 140.63+1.7%3:59 PM EST

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To: TTOSBT who wrote (131277)6/5/1999 8:06:00 AM
From: Lee  Read Replies (1) of 176387
 
TTOSBT,..Re:. is it correct that tobacco has a greater weighting than pc's or computer's or technology in the CPI?

I doubt it but you can search through the BLS data and find out if you like.

stats.bls.gov
Using a Hedonic Model to Adjust Prices of Personal Computers in the Consumer Price Index for Changes in Quality
Currently, personal computers are part of the Information Processing Equipment stratum, which had a relative importance in December 1996 of 0.074 percent in the Consumer Price Index for all Urban Consumers (CPI-U) and 0.057 percent in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). As previously announced, beginning with the CPI for January 1998, Information Processing Equipment will become an expenditure class entitled Information and Information Processing Other Than Telephone Services. Personal Computers and Peripheral Equipment will be one of four strata in that
expenditure class. At that time, the sample size and relative importance of personal computers will increase, due to the incorporation of more recent consumer expenditure weights in the CPI.

Re:.Now why do you suppose we keep hearing things like: "The FED should be more ahead of the curve but usually lags the bond market in raising rates" when there is a discrepancy such as above?

Do you really want the Fed to conduct monetary policy based on the manic over-reaction and volatility the bond market exhibits?

Re:.I wonder when was the last time these indexes were adjusted to modern times and events?

Latest revision was January 1999.
stats.bls.gov
Planned Change In The Consumer Price Index Formula April 16, 1998
The Bureau of Labor Statistics announced today its decision to use a new formula for calculating the basic components of the Consumer Price Index for all Urban Consumers (CPI-U) and the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This change will become effective with data for January 1999.

Re:.It seems to me that the FED is only interested in how much influence it can muster at the time a government report is released? What with all the readjusting that goes on weeks or months after the fact.

Too bad all the people who know how to run this country are busy
running taxicabs or cutting hair.
George Burns (1896-1996)
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