Institutional Analysis: Overinterpreting CPI Is Meaningless

Golden Ten Data reported on March 11 that Brad Conger, Chief Investment Officer at Hirtle Callaghan, stated that overinterpreting today's CPI data in most respects is like "arguing about the dinner menu on the Titanic," because the economy has already hit the 'iceberg' of energy costs. In our view, this data confirms that underlying inflation is consistent with employment trends, namely, showing a downward trajectory. We are increasing our long-duration positions in U.S. Treasury bonds.