S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
WHAT DO YOU KNOW ABOUT RISING PRICES? When it comes to inflation, the United States is doing better than many countries around the world. In the U.S., prices were up 3.4 percent in 2023. In Argentina, prices rose 25.5 percent in December and were up 211 percent for the full year. See what you know about global inflation by taking this brief quiz.
1. Since the 1950s, the highest U.S. inflation rate was 14.6 percent. In what year, did inflation rise that high?
a. 1951
b. 1974
c. 1980
d. 2022
2. Hyperinflation occurs when prices rise so fast that the cost of a cup of coffee could double from one morning to the next. Hyperinflation tends to result from wars and poor central bank policy decisions. Which of these places experienced a monthly inflation rate of 79,600,000,000 percent (causing prices to double about every 25 hours)?
a. Zimbabwe
b. Yugoslavia
c. Germany
d. Greece
3. Companies sometimes try to hide rising costs by holding prices steady while making packages or serving sizes smaller. Consumers pay the same price and receive less for their money. What is this practice called?
a. Miniaturization
b. Shrinkflation
c. Downsizing
d. Camouflage sales
4. In the United States, the price of eggs more than doubled from 2022 to 2023. Which of the following caused the eggs to become more expensive?
a. Omelets were in high demand.
b. 8.1 million people became vegetarians.
c. An outbreak of the bird flu killed 5 million egg-laying hens.
d. Videos of parents cracking eggs on their children’s heads became popular on social media.
Weekly Focus – Think About It
“How much good inside a day? Depends how good you live ’em. How much love inside a friend? Depends how much you give ’em.”
—Shel Silverstein, A Light in The Attic
Answers: 1) c; 2) a; 3) b; 4) c
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