The misery index measures the supposed “misery” in the economy by adding the rate of inflation and the rate of unemployment. Despite the historically benign rate of inflation the misery index actually hit a new 27 year high last month as the rate of unemployment remained steady at 9.1% and the rate of inflation ticked up to 3.6%.
As the old saying goes – “misery loves company” and in this economy the rate of misery is certainly indicative of plenty of company on the misery front….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.