The CLEWI index comprises items such as a Russian sable fur coat, Turnbull & Asser shirts, a Steinway & Sons concert grand piano, season tickets to the Metropolitan Opera, a Patek Phillipe watch, James Purdey & Sons’ Shotguns, a Sikorski helicopter (which is the most expensive item), a Hatteras motor yacht, a Learjet plane, and a subscription to the Forbes Magazine (which is the most affordable item of the index.) Last, but not least, a psychiatrist session in New York is included, too. Being priced at $350 per 45 minutes, it's not for the less well off.
There's a silver lining, though. The net worth of the extremely wealthy people has risen in a much faster pace than the CLEWI index, not to mention the "regular" CPI inflation.
Two questions emerge:
1. Shouldn't the rest of us - the plebs who can't afford a Sikorski helicopter - invest more in equities and less in the low-yielding fee-burdened fixed income instruments that are sold by retail banks to ordinary unsuspecting clients?
2. What if central bankers used CLEWI rather than CPI in their inflation targeting objectives and Taylor rule-based models? Wouldn't it improve the monetary policy? Isn't CLEWI, which is meant to be a fun rather than a serious tool, better inflation gauge, since it excludes all cheap Chinese rubbish? I wrote that central bankers mismeasure inflation, and I am more and more convinced about it.
Oh, yes, and the mandatory disclaimer for the fools who might be prone to making a hasty investment decision after reading one superficial article:
Disclaimer: This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly this website does not constitute investment advice or counsel or solicitation for investment in any security. The owner of this website expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.