Economy crash =/= stock market crash?

Type_45

FTSE 100 currently up 0.2%.

Don't say I don't treat you to good news. 

Swipe

Type_45 said:

FTSE 100 currently up 0.2%.

You must be absolutely gutted

Zola.

Who's interested in the FTSE 100?  

lozzy1965

Zola. said:

Who's interested in the FTSE 100?  

Me   Well at least a little bit.  And it's up 1.31% as I type!  Using some of the logic in this thread that is probably the start of a bull run!

Zola.

I suppose I am too by proxy of the good old life strategy fund... 

Type_45

Zola. said:

I suppose I am too by proxy of the good old life strategy fund... 

VLS was my favourite too back when equities were guaranteed to make money. 

Zola.

They are the closest thing to a sure thing we have if you are patient and don't pay attention to the noise.

Type_45

Zola. said:

They are the closest thing to a sure thing we have if you are patient and don't pay attention to the noise.

There's certainly plenty of noise in a crack up boom.

sevenhills

Prism said:

Surely CPIH is the main measure including housing costs. We don't really use the other two.

This article is from the USA but very applicable to our Government too.

https://www.forbes.com/sites/perianneboring/2014/02/03/if-you-want-to-know-the-real-rate-of-inflation-dont-bother-with-the-cpi/

The Government use CPI inflation to increase benefits and pensions, but the use RPI when increasing train fares and student loans.
Many people have seen 10% of their expenditure (energy bills) increase by 100%, which is a 10% increase on its own.

masonic

sevenhills said:

Many people have seen 10% of their expenditure (energy bills) increase by 100%, which is a 10% increase on its own.

This is the inherent trouble with any inflation index. Some people spend 5% of their expenditure on energy, some 10%, perhaps some as high as 20%. Food, fuel, rent/mortgage interest, etc, all make up different proportions of people's outgoings. Your personal inflation figure is the one that matters and can be higher or lower than the various official figures. But the official figure should reflect the aggregate consumption of items that are being measured. It is worthwhile to track spending and come up with your own price index - if it turns out to be similar to an official index, then great, but many will differ.