Stocks Climb on Benign Inflation Data (BENIGN???)

Discussion in 'Data Sets and Feeds' started by misctrader, May 18, 2005.

  1. http://biz.yahoo.com/ap/050518/wall_street.html?.v=19

    How can inflation be benign when education, housing, gas(even after the recent downturn in oils) are at all time high?

    I know they are measuring "core" CPI and energy and housing aren't consider core?

    Who thought of that smart idea??

    Also, from the article about I quote

    "The nice thing about the inflation data is that it shows that higher prices aren't getting passed on to the consumer," Koesterich said.


    Wouldn't the ABSENCE of pricing power for companies a BAD thing for stocks? Just for simple economic reasoning.

    This goes to show that investors are an irrational bunch.

    :D
     
  2. yenzen

    yenzen

    There really is no need to even question the legitimacy of the data anymore. I'd have to think just about everyone knows the game at this point. Heck, its hardly even a secret. A few pundits assume that there is still a captive audience that will actually buy into the rhetoric, but that captive audience is now busy scribbling notes at the nearest Radisson on how to become a real estate mogul.

    Senor Zen
     
  3. You forgot food, which also rose, though not a huge amount overall.

    I hear far too many people talking about inflation only in CPI terms. They totally neglect the PPI, and seem to only concentrate on the CPI core. It's easy to say there's no inflation when you look at the data which shows no inflation and disregard all else.

    It's like they never heard of cost-push inflation.........
     
  4. Interesting point -- always trade the economic data in context of the prevailing market trend.

    I think real estate has one more leg up -- those home builder charts look good.
     
  5. mhashe

    mhashe


    Actually there is an audience for this garbage. It's called the "Average voting public". And it'll work forever as long as you keep them fat, dumb and illiterate.
     
  6. Sam123

    Sam123 Guest

    The "Average voting public" is quite average in weight, intelligence, and literacy. It's really about the fact that most Americans are content with their lives. And when people are comfortable, they tend to take things at face value and not scrutinize information that is incomplete or even misleading.

     
  7. whenever you buy something look at the box. three words. "made in china"

    dirtcheap goods.

     
  8. ========
    Good trend comment and ;
    I am not sure the homebuilders will make that leg up this summer or or later like late 2005?????. Too early for homebuilders for me, now.:cool:
     
  9. now ya know why economics is called voodoo science.
    economists are on the same level as lawyers on the food chain.
     
  10. Yeah, "goods" are cheap! But nothing else. Education, health care, HOUSING, gasoline, and all of the other ESSENTIALS that's not really count in the core CPI are at all time high!

    I think a person needs more that some widget or toy from Wal-Mart to be dirt cheap in order to live!
     
    #10     May 19, 2005