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It's not the inflation component which is killing real personal income (ex transfer receipts)...it's the bad modelling which is used to generate current estimat
by blorgle 5y ago
It's not the inflation component which is killing real personal income (ex transfer receipts)...it's the bad modelling which is used to generate current estimates that are subject to revisions.
The revisions show the real picture, and it is not pretty.
See https://alhambrapartners.com/2021/07/30/inflation-estimates-pce-totally-overshadowed-by-benchmark-income-revisions-and-the-deflationary-implications-of-them/ https://alhambrapartners.com/2021/07/30/inflation-estimates-...
- qPM9l3XJrF 5y agoAssuming this blog post is correct, what would a smart response be from an investor point of view?
- imtringued 5y agoMost likely to get out of the US stock and housing market. Stop borrowing money, reduce leverage, etc. If you like risk then short the most bubbly companies around.
- atlantageek 5y agoI would argue fixed rate debt is your best friend in a high inflation scenario. With the cash being reinvested in staples type stocks (food and basics)
- refurb 5y agoAm I the only one that can't read that blog post? It's seems stream of consciousness and odd grammar that throws me off. And the bio of the author doesn't engender much confidence: "He is not an economist, which is probably why he's been able to develop a working model of the global monetary system. His research is unique and informative in ways an economist would never consider."