Go to http://public.com/graham and use code GRAHAM and you’ll receive a randomized free stock worth up to $1000 once you open an account! Let’s talk about the REAL Inflation Numbers – Enjoy! Add me on Instagram: GPStephan
Trade Bitcoin, Doge, and other crypto with zero fees on FTX. Use my referral code GRAHAM and get up to $100 FOR FREE: https://ftx.us/partners/graham
INVEST WITH ME: http://www.creatorproperties.com/
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF – $100 OFF WITH CODE 100OFF
FIRST, CPI numbers are adjusted to consider the fact that, when prices rise…consumers might switch to less expensive alternatives as a way to save money…and, THIS SWITCH is calculated in the overall amount that’s shown here.
SECOND, in terms of housing – they base this on a metric known as “Owners’ Equivalent Rent.” This is obtained by asking homeowners: “If someone were to rent your home today, how much do you think it would rent for monthly, unfurnished and without utilities?”
Of course, that brings a MAJOR CONCERN that – home owners might not accurately KNOW what their home would rent for, and – it’s entirely dictated by an OPINION…NOT by actual data. For instance, in the latest CPI report, “owners’ equivalent rent of primary residence rose a solid 0.6%,” which would imply a 7.2% increase. Meanwhile, “Realtor.com pegged year-over-year rent growth in March at 17%, while Zillow’s Observed Rent Index grew 16.8%.”
This is INCREDIBLY IMPORTANT, because SHELTER makes up 1/3rd of the ENTIRE inflation index…and, if this number comes in LOWER…it dramatically skews the TRUE inflation we’re actually seeing. To show you JUST HOW MUCH…take a look at this chart, which compares the Schiller price index to that of “owners equivalent rent”…and you can see just how far apart they are.
AND FINALLY, THIRD…we have a metric called CORE INFLATION, that excludes food and energy…because, those are known to be more volatile based on outside factors…and, they’re also considered to be “Staple Items” that are consumed on a regular basis, regardless of how much they cost.
In this case, gas prices are up 50% year over year from increased demand and limited production…and, grocery prices were up nearly 12% year-over-year, reflecting the largest 12-month increase in 43 years….eggs were even up 32% from a year ago as a result of increased costs that get passed on to the consumer.
Point being…inflation numbers are EXTREMELY DIFFICULT to calculate, because – even though there are ways to cut back and buy cheaper alternatives, truth be told…the actual number, for someone making no adjustments to their every-day living, IS substantially higher than what’s being reported.
My ENTIRE Camera and Recording Equipment:
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*This is a paid endorsement for Public.com. Offer valid for U.S. residents 18+ and subject to account approval. This is not a recommendation. You can lose money with any investment. Open To The Public Investing is a member of FINRA & SIPC. Regulatory and firm fees apply. See Public.com/disclosures/
*This communication does not constitute a solicitation or offer to sell interests in any investment vehicle, which will only be made pursuant to a confidential private placement memorandum. Real estate investments involve significant risks, and investors should have the financial ability to accept the risk of loss of their entire investment.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/