3 ms·
$100 in January 2005 had the purchasing power of $122.55 in 2015. Having $105 instead ain't great. Your "zero risk" investment tied up money for a decade, and
by msabalau 9y ago
$100 in January 2005 had the purchasing power of $122.55 in 2015. Having $105 instead ain't great. Your "zero risk" investment tied up money for a decade, and you had less purchasing power at the end of it.
Interest rates incorporate inflation expectations. What's bizarre now is the way we are playing footsie with deflation.
- Spooky23 9y agoFortunately, rates are annual and interest compounds. The end balance is $162.89. For the cash portion of my portfolio, that's a good investment. If you're an unsophisticated investor, stuff like this or savings bonds are smarter investments.