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Forget Government Data; Watch the Bacon Cheeseburger Inflation Index

One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions. One of the lessons I learned a long time ago is to look for confirming data points and to let the data “talk to you.” I have seen many, many times when people are looking for data that supports the outcome they want rather than listening to data for what is really happening.

One source of data is the U.S. federal government and its various departments, such as the Bureau of Labor Statistics and the Census Bureau. Another source is the Federal Reserve, which has its hands on the wheel when it comes to monetary policy. As any sandbox economist can tell you, monetary policy is one of the tools used to goose economic growth or cool it down a bit to temper inflation.

It would be nice to think those data sources were painting a complete picture, but they aren’t. In some cases, the data they furnish can be misleading. For example, despite the “official” statistic telling us there has been little inflation, we all know that food and gasoline prices have made significant moves. From beef and pork prices to coffee, cocoa and others, I know you are feeling the pain because I am feeling it, too.

But the government doesn’t seem to see it. Or at least the government’s data doesn’t.

Read more about why you should watch the bacon cheeseburger inflation index at Eagle Daily Investor.

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One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions.

archive

Forget Government Data; Watch the Bacon Cheeseburger Inflation Index

One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions.

One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions. One of the lessons I learned a long time ago is to look for confirming data points and to let the data ??talk to you.? I have seen many, many times when people are looking for data that supports the outcome they want rather than listening to data for what is really happening.

One source of data is the U.S. federal government and its various departments, such as the Bureau of Labor Statistics and the Census Bureau. Another source is the Federal Reserve, which has its hands on the wheel when it comes to monetary policy. As any sandbox economist can tell you, monetary policy is one of the tools used to goose economic growth or cool it down a bit to temper inflation.

It would be nice to think those data sources were painting a complete picture, but they aren??t. In some cases, the data they furnish can be misleading. For example, despite the ??official? statistic telling us there has been little inflation, we all know that food and gasoline prices have made significant moves. From beef and pork prices to coffee, cocoa and others, I know you are feeling the pain because I am feeling it, too.

But the government doesn??t seem to see it. Or at least the government??s data doesn??t.

Read more about why you should watch the bacon cheeseburger inflation index at Eagle Daily Investor.

Written By

Chris Versace is a financial columnist and equity analyst with more than 18 years of experience in the investment industry. He has been ranked an All Star Analyst by Zacks Investment Research and his efforts in analyzing industries, companies and equity securities have been recognized by both Institutional Investor and Thomson Reuters?? StarMine Monitor. He??s frequently published in The Washington Times and is a frequent contributor to the daily radio show ??America??s Morning News? and ??America??s Radio News?. He has been quoted in the Wall Street Journal, Investor??s Business Daily, The Street, USA Today and other publications. In addition, he can be frequently seen on television??s ??Fox Business? show.

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