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In the US, the food component as a percentage of overall CPI is 7.8%. In China it is 31.4%. In India 47.1%!

by Zh

For all those wondering why the Federal Reserve will likely never hike rates on the basis of undisputed surging food and energy prices, here is the reason: in the US, the food component as a percentage of overall CPI is 7.8%. In China it is 31.4%. In India 47.1%! The US CPI, therefore, is a completely irrelevant metric when it comes to measuring the one [...]

BNY’s Nicholas Colas: If the Boys Want to Fight, You’d Better Let Em

by Nicholas Colas

Colas observes that “the options market has been busy pricing in higher levels of perceived risk across a variety of asset classes, most notably investment grade bonds, silver, and emerging markets. In fact, of the 20 asset classes and industrial sectors for which we track risk pricing in the options market, 15 show heightened levels of investor concern for the upcoming 30 day period.” [...]