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Eco

Submitted by contestwinner on April 22, 2007

Category: Book Reports
Words: 2087 | Pages: 9
Views: 159
Popularity Rank: 49,974
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Inflation:

Retrieved January 30, 2007 from: http://www.fintrend.com/ftf/MIP.asp

The Moore Inflation Predictor© (MIP) is a highly accurate graphical representation of the future direction of the inflation rate. It has a 97%+ accuracy rate on direction & turning points. And over 90% of the time the rate falls within the projected "likely" range and 7% of the time it falls within the "possible" range.
By watching the turning points, we can profit from inflation hedges (like Gold, Real Estate and Energy Producers) when the rate is trending up and from Bonds when the rate is trending down. In addition it could be used to judge whether to lock in a mortgage rate or wait a month or two for a better rate.
To see how well the MIP has done in predicting inflation see the December 2005 MIP and others with a reality line added.
CURRENT ANALYSIS
The MIP for last month was projecting higher inflation again for this month and that was exactly what we got.
The monthly inflation rate for November 1.97% while the Annual Inflation Rate in December came in at 2.54%.
The MIP is projecting a long slide from here through mid-year with inflation rates possibly reaching new lows before rates begin rising again. June or July might be a good time to refinance your mortgage because interest rates tend to follow inflation rates.



How the MIP measured up:
http://www.fintrend.com/ftf/Real_MIP.asp

It has been a difficult year for most Inflation predictors. Last December in the wake of hurricane Katrina and massive increases in the price of oil many prognosticators were predicting massive increases in inflation.
Our Moore Inflation Predictor© on the other hand was predicting relative level inflation with a significant drop a year into the future. Most of the others thought we were absolutely nuts. In hindsight we were amazingly accurate in a very difficult...

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