While the Fed has focused on the output gap and CPI/PCE in giving them comfort with the inflation outlook, I’ve been arguing that their easy money policy has again resulted in asset inflation that will at some point manifest itself in consumer prices. We’ve seen asset inflation with an incredible run in equity prices over the past year and dramatic tightening in corporate credit spreads. Like a sequel to a movie, the demand for yield in an artificially low interest rate world creates this action and distorted allocation of capital. We’ve also seen demand for hard assets too, as evidenced by the price of industrial metals, precious metals and energy. Today, add another to the hard asset grab, comic books. This morning was the sale of an 8.5 (out of 10) graded #1 Action Comics, the 1st Superman issue, at $1.5mm, breaking all sale price records. It passed the Feb record of $1.075mm for Batman #1 and an 8.0 graded #1 Superman also in Feb of $1mm
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