Understanding Price Indices: PCE vs. CPI

This chapter explores the differences between the Personal Consumption Expenditures (PCE) index and the Consumer Price Index (CPI), emphasizing their approaches to consumer behavior and price shifts. Through personal anecdotes and comparative analysis, it illustrates how these indices reflect various economic sectors and their significance in evaluating inflation trends.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Stig Brodersen has invited back investment expert Cullen Roche to discuss how to optimize your portfolio for financial independence and sleeping well at night.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:05 - What the difference is between CPI and PCE.

08:31 - Whether central bankers should be elected?

14:46 - What the velocity of money is, and how it impacts inflation?

19:08 - What it means for inflation and the US dollar that the world is decoupling.

28:19 - What a balance sheet recession is and why it is important to understand investors.

34:15 - Whether the 60/40 portfolio is still working.

41:02 - Which longer cycle we are missing in the financial markets.

41:34 - Whether the next 40 years of stock market performance will look like the previous 40 years.

46:28 - Whether central banks fight global warming?

54:31 - Which portfolio to build for independence and sleeping well at night.

1:09:30 - Which bias does the new generation of investors have.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Listen to Stig's interview with Cullen Roche about Macro Investing - TIP486 or watch the video.
Related Episode: Listen to Inflation Masterclass Continued - TIP472 or watch the video.
Related Episode: Listen to Inflation Update and the recent FOMC Meeting - TIP420 or watch the video.
Cullen Roche's website, The Discipline Funds.
Cullen Roche's website, Pragmatic Capitalism.
Tweet directly to Cullen Roche.
Email Cullen at cullenroche@orcamgroup.com.
Cullen Roche's YouTube channel.
Cullen Roche’s book, Pragmatic Capitalism – Read reviews here.
Gavin Jackson’s book, Money in One Lesson - Read reviews here.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

River
Toyota
Range Rover
Vacasa
AT&T
The Bitcoin Way
USPS
American Express
Onramp
Found
SimpleMining
Public
Shopify

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests