CPI – Where’s The Beef? “Lies, Damned Lies, And Statistics”

CPI – Where’s The Beef? “Lies, Damned Lies, And Statistics” by Rob Arnott & Lillian Wu – Research Affiliates

Key Points

1. American households, pinched by rising prices at a rate higher than headline inflation, have generally not benefited from the unrelenting stimulus of quantitative easing and zero interest rates, and instead have experienced a decade of zero growth in income and spending power.
2. The high valuations and low interest rates born of accommodative monetary policy lower forward-looking returns for both the wealthy and the middle class, but the middle class, who must invest today to prepare for retirement tomorrow, suffers relatively more.
3. When the Fed eventually steps away from overt market interventions, capital market valuations should revert to more normal (i.e.,...
   

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