Guest Post: The Real Housing Recovery Story
January 22, 2013 - 5:34pm
Via Lance Roberts of Street Talk Live, Imagine that your financial advisor called you up one day and said: "Great news...your investment portfolio gained 1% in January which is an annualized return of 12%. However, we have to subtract .05% from that return because historically January's return has only been 0.95% since 1950. This brings our seasonally adjusted return to 11.4%." Of course, after the SEC pays a visit to the advisor to correct his performance reporting measures, the simple reality is that "what you see is what you get." While this example may seem a little farfetched - this is exactly what happens with a variety of economic reports that are released by various government agencies and member organization/lobby groups. The reasoning for such data manipulations is not a nefarious scheme; but rather an attempt to smooth what is normally v...
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