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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Les H who wrote (36077)12/28/1999 11:04:00 AM
From: pater tenebrarum  Read Replies (2) | Respond to of 99985
 
Les, people overlook that inflation is actually represented by the increase in the money supply, not necessarily changes in the CPI. still, i expect negative CPI surprises to hit early next year...one of the items that has been restraining it in recent years has begun to move up sharply in price, namely PC's. the low-end stuff is either getting more expensive, or it is stripped down memory-wise. another item that should begin to weigh in are rents...wherever one looks, they're on the rise. it's actually rather strange that CPI hasn't yet captured some of the increases evident in anecdotal form.
anyway, what's left unsaid in the government stats is being expressed in the bond market instead. i'm hearing about how bond yields should be lower ever since they re-crossed 5 1/2% to the upside...