Remember, CPI tracks the loss of the purchasing power of your dollars, and thereby the purchasing power of your hard earned labor.

Let’s zoom in on this since 2020:

CPI tracks the loss of the purchasing power of your dollars, and thereby the purchasing power of your hard earned labor:

April 2022 purchasing power: 58.4 (down -4.62% in purchasing power in the last year!)
April 2020 purchasing power: 65.9 (down -15.5% in purchasing power in two years!)

The Consumer Price Index (CPI) is a measure that helps us understand how the average price of a basket of goods and services has changed over time.
- In other words, it’s an indicator of inflation, or the increase in prices over time.
- When I say that the purchasing power of your dollars has decreased, I’m talking about how much less you can buy with the same amount of money due to rising prices.
The purchasing power of your hard-earned labor is eroded by inflation!
For example, imagine you have $100 today, and you decide to save this money in cash instead of investing it.
- Fast forward a year, and the CPI indicates that there’s been a 6.9%% increase in the average price of goods and services.
- This means that the things you could buy with your $100 last year would now cost $106.9.
  - The value of your dollars has decreased, and your purchasing power has dropped.
To avoid this loss in purchasing power, many investors choose to put their money into assets that are expected to appreciate over time.
These investments aim to counteract the effects of inflation and help maintain or increase the purchasing power of your money.
GameStop’s Q422 Results have them positioned to succeed in this environment:

Net Sales: $2.2BCash Flow from Ops: $337MNet Income: $48MCash + Equivalents: $1.39BLT Debt: negligible