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What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre
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Leveraging Intrinsic Value and Market Valuation: Boosting Investment Performance

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Investment Strategy: Leveraging Intrinsic Value and Market Valuation The fundamental question in the field of investing is, "How can I improve the performance of my investments?". The answer lies in a simple principle: buy low and sell high. In this article, we'll explain how to use this principle and how it can work for you. Buy low, sell high: look at intrinsic value The principle of "buy low and sell high" is very important in investing. However, this principle isn't just about looking at the rise and fall of a stock price, it's about looking at the actual intrinsic value of a company. While it's important to buy low and sell high, it's even more important to adjust your weightings and allocations based on the market or the company's valuation level. This allows you to buy stocks when they're cheap relative to the value of the company and sell them when they're expensive, thereby increasing your investment performance. The BLASH pr
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