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Category: Inflation

Inflation! Deflation! Two words that strike fear into the hearts of investors. Are such fears justified? Let’s take a look… If we segment calendar year changes in the Consumer Price Index (CPI) into quintiles, we observe the following: The lowest equity returns have occurred in deflationary (quintile 1) and inflationary (quintile 5) environments. The highest […]

Every major developed country central bank in the world is maintaining negative real interest rates in what is now the 9th year of a global economic expansion. Source Data: Investing.com and Pension Partners, as of February 1, 2018. Real interest rates = nominal interest rates minus the inflation rate (CPI = consumer price index). Why […]

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