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Ignore inflation at your own peril when investing

Ignore inflation at your own peril when investing
Ignore inflation at your own peril when investing

Synopsis

The safety vs returns dichotomy of so many investments that people make all the time looks very different when you subtract the inflation rate from the investments. Once you do that, you may realise that the safest investments actually do not even manage to completely compensate for the inflation rate.

"Nevertheless it was the natural reaction of most Germans, or Austrians, or Hungarians— indeed as for any victims of inflation—to assume not so much that their money was falling in value as that the goods which it bought were becoming more expensive in absolute terms”.That’s a quote from the book When Money Dies by Adam Fergusson, a British journalist and politician. People who are familiar with economic history will know that this refers to the
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