Archive
Archive for February, 2011
Robert A. Weigand, Ph.D.
is Professor of Finance and Brenneman Professor of Business Strategy at Washburn University in Topeka, Kansas. Previously, Dr. Weigand has been a faculty member at Texas A&M University, the University of Colorado, and the University of South Florida. Dr. Weigand is the author of over 40 scholarly articles and book chapters. His research has supported various innovations in the field of asset management, including Russell Investment's CrossVol(TM) Volatility Indexes. His first full-length book, Applied Equity Analysis and Portfolio Management, is scheduled to be published by John Wiley and Sons in 2014. Dr. Weigand earned his Ph.D. in Financial Economics from the University of Arizona in 1993.
Twitter Updates
- Leading indicators suggest U.S. economy has slowed significantly in recently months: wp.me/pgvGo-NS 4 years ago
- Big move for NetFlix yesterday on news the company is adding global subscribers, but stock remains overvalued:: wp.me/pgvGo-LS. 5 years ago
Blog Stats
- 103,037 hits
Recent Posts
- Why the U.S. Fed Has to Keep Tightening Even Though The Most Reliable Recession Indicator Is Flashing “Game On”
- U.S. Stocks Returns: First 22 Months, President Obama vs. President Trump
- The Good, the Bad, the Bubble and the Downright Crazy
- Sector Analysis Suggests Investors are Cautious About the Sustainability of the “Trump Rally”
- TIAA-CREF Warns That Negative Interest Rates are Coming
Economics
Financial News and Analysis
Washburn University
Archives
- November 2018
- January 2018
- May 2017
- May 2016
- February 2016
- December 2015
- October 2015
- August 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- July 2014
- June 2014
- May 2014
- April 2014
- February 2014
- January 2014
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- December 2011
- November 2011
- August 2011
- July 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- July 2010
- June 2010
- February 2010
- December 2009
- October 2009
- August 2009
- July 2009
- June 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
Another Meaningless Number: The Energy CPI
Is there anyone left out there who still believes that officially published inflation rates do not understate actual inflation? This morning I learned that gas and oil prices have been rising faster than the energy CPI for years — a result which fails to resonate with my common sense.
The chart below was constructed using data from FRED2. I took oil and gas prices, deflated each series by the official energy CPI, and marveled at the results.
Since 1994, gas prices have risen 2.8% per year faster than the energy CPI, and oil prices have risen 9.6% per year faster. Are gas and oil prices being hedonically “adjusted” (manipulated) downwards when incorporated into the energy CPI? Or are other components of the energy CPI deemed to be “better” each year, and thus deserving of hedonic adjustments? Electricity, perhaps?