But equity investors don't necessarily have to care so
much about inflation or currency depreciation (two sides of the same coin), since they often tend to be compensated accordingly with higher / lower underlying equity returns.
Assume they retire next year (so we don't have to think
much about inflation or the tax code changing).
Once our spending target of $ 80 - 90k is inflated up to the net income of around $ 120k (after about 20 years) we already have access to the tax - deferred accounts so we don't really worry too
much about inflation eroding our portfolio.
Not exact matches
Controlling
inflation is as
much about confidence as it is
about moving interest rates up and down.
Author Kelly Shue, of the University of Chicago, says boards» apparent mistake is a common one, highlighted by years of research in the field of behavioral economics, and
much like the way workers get confused
about the effect of
inflation on the real value of their paychecks.
In Vermont, where the minimum wage is currently $ 8.60 and has been above the federal level and indexed to
inflation since 2007, small business owners don't think
much about the annual wage increases anymore, says Betsy Bishop, president of the Vermont Chamber of Commerce.
That helps give the Fed leeway to keep its benchmark short - term rate near zero without worrying so
much about higher
inflation.
Given these positive surprises, and because monetary policy must be forward - looking to achieve our
inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is signalling stronger economic momentum in Canada and globally; second, how heightened levels of uncertainty, particularly
about US tax and trade policies, should be incorporated in our outlook; and third, how
much excess capacity the economy currently has, and the growth rate of potential output going forward.
If, as I have indicated, the U.S. growth and
inflation outlooks have not changed notably, then why have expectations
about U.S. monetary policy shifted so
much?
The conundrum with TIPS is they get hit from rising interest rates so it's all
about how
much does
inflation make up for that rise.
Mishkin noted «I am less optimistic
about the prospects for core PCE
inflation to move
much below 2 % in the absence of a determined effort by monetary policy,» adding that «a substantial further decline in
inflation would require a shift in expectations, and such a shift could be difficult and time - consuming to bring
about.»
Policymakers are unlikely to care
much about the reasons given the moves may help revive
inflation.
It was in response to this trend, as
much as anything else, that Fed officials this fall started talking
about the need to maintain price stability — in this case, by trying to boost
inflation.
Listen, and you go back years and think
about if you got this sort of growth, this sort of wage acceleration, that the rate of
inflation would be
much higher.
The U.S.
inflation numbers were
much as expected but all the DEBT futures markets rallied as it seems the shorts in the markets are nervous
about new uncertainties in the Middle East.
As usual, I don't place too
much emphasis on this sort of forecast, but to the extent that I make any comments at all
about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent
inflation pressures, particularly if we do observe economic weakness.
Perhaps it was the last element of
inflation hysteria, where the markets during that period didn't so
much believe as the Fed
about its forecasts for economy and prices, rather they believed the Fed believed in its own numbers.
The BOE is talking openly
about looking through higher
inflation and not raising rates, and some Fed officials have talked
about letting the US economy (and presumably
inflation) run «hot» for a period, without raising rates
much.
«As
much as there's a lot of hoopla
about this increased lending and profitability, all the lending in the world is not going to matter if Treasurys are right
about growth and
inflation going forward given this flattening of this yield curve,» he also said on «Closing Bell.»
While the
inflation impact from higher oil prices and commodity prices in general, continue to pump up
inflation expectation and push bond yields higher, keep in mind that
much of the recent spike in Yields is
about as
much about supply as it is
about inflation.
From what I have said
about the Bank's approach, it should be clear that any differences between our judgments and the markets» judgments can occur not only because our
inflation forecasts might differ, but also because our basic objectives are
much broader than the markets», and our horizons are
much longer.
Much of the debate
about slack, the drop in unemployment to 16 - year lows and wage gains goes to the heart of the Phillips Curve — a model developed in 1950s by New Zealand economist William Phillips to determine the inverse relationship between the unemployment rate and
inflation.
Hence
much of the changes that many Argentines credit the Kirchners for having brought
about (such as family subsidies, higher employment levels and stronger purchasing power despite rising
inflation, as well as access to services and products that the poor were suddenly able to access post-2001) are expected to yield wide turnout among Argentina's poorer classes, without the Frente para la Victoria having to worry
about registering — and then turning out — those who might be considered marginal voters in the US.
Adjusting for
inflation, air bags cost
about one - eighth as
much as in 1974, when Oldsmobile offered dual air bags as a $ 300 option.
If the CPI has been showing an average rate of
inflation of 3 % for the country, there is not
much you can do
about that.
Most individual investors worry too
much about short - term fluctuations in portfolio value, and not enough
about the long - term devastating effects of
inflation.
Again, we don't want to talk too
much about investments because this is more
about ranking priorities, but fear of
inflation is something to consider and rank accordingly.
Even though one might think what would be important to measure would be overall Money Supply
Inflation,
much more often people care more
about measuring Price
Inflation.
While the average stock - market return over the past 80 years was
about 10 % (
about 7 % after
inflation), the actual return in any given year can be
much higher or lower.
Why worry
about hitting a certain savings number / account size when you're not clear what the withdrawal rate will be or how
much impact
inflation may have during your retirement?
My biggest pet peeve when certain financial blogs talk
about how renting is so
much better than owning is they don't take
inflation into account.
Or how
about if over the course of a long retirement now - dormant
inflation re-awakens to the point that your annuity payment can no longer cover as
much of even your day - to - day expenses as it once did?
Under regulator Ofcom's rules, providers are permitted to increase the monthly cost of mobile contracts by as
much as the rate of
inflation each year, as long as they are upfront
about this and warn you before you sign up.
Despite worry over
inflation, it doesn't tell us
much about where the economy is headed.
I would not try to assume that stocks are a good
inflation hedge... Corporations have to buy raw materials and have to feed hungry workers... When the price of oil and foold go up it is very hard for corporations to improve on earnings, so if you think
about it,
much of the benefits of a rise in CPI are negated by a rise in raw materials prices... Put more bluntly, we are in a period of stagflation right now.
This is one of the reasons why US
inflation is so
much lower than
much of the rest of the world, and the government should be more honest
about the value of our currency.
Annual returns have averaged 4.23 % over the past 16 years, and when adjusted for
inflation, this amounts to only
about 2 - 3 % real returns per year, despite having just as
much equity risk as the C Fund or the S Fund.
There is
much that we do know
about the relationship between interest rates,
inflation, savings, real...
Since governments and their central banks are the agents responsible for the
inflation believing them
about the rate of
inflation is like believing a thief when you ask him how
much he stole.
But over time, the returns are
much greater than savings, and you're barely escaping
inflation (which we will talk
about below).
I can not do
much about interest rates, other than react, and I will stay ready, especially if
inflation pressures push up rates and the fixed income market offers me a better payoff.
Or it may be because the Royal Society received
about # 53 million from government in 2008 (rising
much faster than
inflation).
Wired GC doesn't
much care
about the cause of the increase, whether it's talent or
inflation or profit motive — the latter which Wired GC identifies as a «likely culprit.»
(Even the (in) famous average rate of
inflation in India has been outrun by the increase in cost of education,) And now,
about how
much to invest in your child's future.
Inflation is through the roof, their native currency has
about as
much value as one - ply toilet paper, and people — families — are starving.
He said he doesn't take
much stock in consumer surveys
about inflation expectations because most people have been ingrained to expect
inflation in the future, not deflation.
About 5 years ago we had a hunch that
inflation would go up a lot (it hasn't) and made a plan to get as
much low interest financing as possible.
Economists like to say
about inflation that prices are determined by how
much money is chasing how many goods.
For
much of the economic expansion, wage increases have been moderate,
about 3 percent annually, helping keep
inflation in check, says Sheehan.