I would also argue the surge in tech stocks (and the stock market in general) is also caused by the excess money supply. I think the CPI is a misleading indicator of inflation -- especially in this day and age. Wealth inequality in this country is real, and majority of excess capital just doesn't get spent on buying consumer goods anymore. It instead goes back into the securities market -- creating further wealth inequality. This is backed up by the fact that the richest 1% of Americans now own more than half of the value of equities. I would even argue the stock market itself could be an indicator for inflation -- not the CPI -- and we are living in a hyperinflation era. Whether that is sustainable or not is to be seen.
Just my humble two cents on the market but would like to further learn from you through this blog. Keep it up.
Excellent article. Thanks for sharing.
I would also argue the surge in tech stocks (and the stock market in general) is also caused by the excess money supply. I think the CPI is a misleading indicator of inflation -- especially in this day and age. Wealth inequality in this country is real, and majority of excess capital just doesn't get spent on buying consumer goods anymore. It instead goes back into the securities market -- creating further wealth inequality. This is backed up by the fact that the richest 1% of Americans now own more than half of the value of equities. I would even argue the stock market itself could be an indicator for inflation -- not the CPI -- and we are living in a hyperinflation era. Whether that is sustainable or not is to be seen.
Just my humble two cents on the market but would like to further learn from you through this blog. Keep it up.