Election Returns (Part 3)

Why isn’t inflation a bigger issue?

With all their policy positions, it’s the rare politician that discusses inflation. The last time I remember inflation being an electoral item was during the Carter/Reagan contest of 1980. And I find no evidence of it being discussed very much during any other post-war election.

But as we’ve seen, inflation is a critical determinant of the market’s success during a President’s term. Many candidates may ignore the subject is because it’s been outsourced to the Fed. And the bipartisan term of Maestro Alan Greenspan made central bank policy off-limits in political debates.

But legal matters have been outsourced to the courts, and we still debate those during elections. And B.A.–before Alan–we still shied away from the question.

One reason pols could shy away from inflation is because it’s a “vegetable” item: essential, but not very fun. It doesn’t supply the “red meat” that other hot button issues provide. The other possibility is that they just may not understand what the inflationary implications of their policies are.

Or they may not like the answers.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T21:01:11+00:00 September 5th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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