Lsbcal
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
This Pimco article PIMCO | Viewpoints - Preparing Portfolios for Inflation has a nice pie chart showing the components of the CPI:
This made me think about our exposure to the CPI:
1) Shelter is fixed for us, only RE taxes increase at a modest rate that is capped in California. So this really reduces our CPI exposure.
2) We probably won't have any Education costs. Communications, is that web access and cable TV? Then we have modest exposure there.
3) Recreation: probably more exposed but this is a discretionary item.
4) Energy: we drive less then the average but will travel (is that recreation?).
5) Medical: maybe more exposed but only modestly for the near future.
Overall for us I think maybe we have a 70% exposure to the CPI. So now all I have to do is stop worrying about this one.
This made me think about our exposure to the CPI:
1) Shelter is fixed for us, only RE taxes increase at a modest rate that is capped in California. So this really reduces our CPI exposure.
2) We probably won't have any Education costs. Communications, is that web access and cable TV? Then we have modest exposure there.
3) Recreation: probably more exposed but this is a discretionary item.
4) Energy: we drive less then the average but will travel (is that recreation?).
5) Medical: maybe more exposed but only modestly for the near future.
Overall for us I think maybe we have a 70% exposure to the CPI. So now all I have to do is stop worrying about this one.