A market basket is a group of consumer goods and services used to create the consumer price index (CPI). By comparing prices in the CPI from one year to the next, economists can determine if inflation is rising or falling. Market baskets are also used by investors to create indexes and mutual funds from stocks and bonds.
These various market baskets are used by economists, retailers, and investors alike. Retailers use the CPI to predict impulse buys by consumers. As mentioned above, economists create a permanent mix of goods that are bought and sold. Investors create a market basket from bonds, stocks, and even of other indexes, such as the S&P 500.
CPI is a macroeconomic indicator and a reflection of spending patterns. That is why it is useful to retailers. It is not a cost-of-living index. The government uses CPI to adjust monetary policy. Through feedback from consumer surveys, officials are able to put together spending patterns and average prices for items. To provide an accurate representation of the economy, the CPI covers a broad range of goods and services categories. These categories include recreation, apparel, housing, transportation, and education.
In addition to consumer-related goods and services, CPI also includes government fees of public goods such as water and sewage. Any taxes levied on the products and services that are in the CPI are also included.
Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized”). Equity securities offered on this website are offered exclusively through Thornhill Securities, Inc., a registered broker/dealer and member of FINRA/SIPC("Thornhill"). Investment advisory services are offered through Thornhill Securities, Inc. a registered investment adviser. Thornhill Securities, Inc. is a subsidiary of Realized. Check the background of this firm on FINRA's BrokerCheck.
Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.
This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact 877-797-1031 or email@example.com.