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Stock market question with regards to inflation

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djiddish98

djiddish98

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Anyone know or have an opinion on why inflation adjusted figures aren't quoted more regularly in the stock market news?

I'm thinking back to November 08, when things were at "1997" levels. However, that's comparing 1997 dollars to 2008 dollars. Things were actually even worse when adjusting 2008 dollars to 1997 dollars or vice versa.

Did that not even need to be made apparent at that point? Is it just laziness on behalf of the news? Or is it not relevant?

They do this occasionally when reporting on gold, but I don't think I've ever seen it in a "stock market" article.
 
You can track the inflation index (CPI) yourself just by getting a chart and checking it out. As for an answer to your question. If you are talking about news coming from CNBC, they will report the news that they feel will keep the retail investor buying. Well not actually, they do report on all of the reports that come out, but they might noit spend any time hyping the ones that they don't want too.

As for the CPI itself, it is a sham, they regularly cook the books so that they don't have to adjust the social security amounts paid out to the fossils. If they actually did the correct calculations, everyones social security would need reajustment. Also I'm not sure, but I think they don't include energy cost in the index.
 
I certainly wouldn't expect any serious reporting or heavy lifting from most of CNBC.

Still, the mainstream financial press (wall st journal, bloomberg, etc) doesn't really make a habit of adjusting for inflation. You'd think with how math / finance heavy their target audience is, this would be the norm with reporting and much more prevalent. Even guys who are hard core with charting and technical analysis don't seems to adjust when showing long term plots.

You're spot on about CPI too - perhaps the tools are just too crude for adjusting for inflation to take it seriously. (I think core CPI does exclude fuel - there was a big uproar about that back when gas prices were so high).
 
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