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Has anyone looked at the details on the 1980 CPI based inflation calculation? It shows inflation near 10% instead of 2%. If that's true then it seems almost any investment has been garbage, in particular bonds. It seems taking on credit is the smartest thing you can do in this situation as long as you can pay it back. A big if in a down market for sure but it seems like paying ahead on your mortgage is barely better than just leaving it in the bank. I've been thinking about this a lot lately as I have received a decent amount of money from tax returns and bonuses and the idea of leaving it as an emergency fund is burning a hole in my pocket. The best idea I can come to is maybe leaving a third of it in the bank, a third in precious metals, and a third invested in emerging markets.
Has anyone looked at the details on the 1980 CPI based inflation calculation? It shows inflation near 10% instead of 2%. If that's true then it seems almost any investment has been garbage, in particular bonds. It seems taking on credit is the smartest thing you can do in this situation as long as you can pay it back. A big if in a down market for sure but it seems like paying ahead on your mortgage is barely better than just leaving it in the bank. I've been thinking about this a lot lately as I have received a decent amount of money from tax returns and bonuses and the idea of leaving it as an emergency fund is burning a hole in my pocket. The best idea I can come to is maybe leaving a third of it in the bank, a third in precious metals, and a third invested in emerging markets.
http://www.shadowstats.com/alternate_data/inflation-charts
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