3 ms·
Let's say two dollars exist in the world. Your stock is worth one of them in 2000. I quadruple the money that exists in the world to 8 dollars by 2020. The m
by JohnJamesRambo 5y ago
Let's say two dollars exist in the world. Your stock is worth one of them in 2000. I quadruple the money that exists in the world to 8 dollars by 2020. The market says your stock is worth two dollars in 2020. Did you lose value, gain value, or stay the same?
For more thought experiments compare your stock value to coffee or a Big Mac.
https://inflationchart.com/spx-in-coffee/?show_adjuster=1&logarithmic=1 https://inflationchart.com/spx-in-coffee/?show_adjuster=1&lo...
https://inflationchart.com/spx-in-bigmac/?show_adjuster=1&logarithmic=1 https://inflationchart.com/spx-in-bigmac/?show_adjuster=1&lo...
Essentially no gain, it's all paper, your purchasing power stayed exactly the same even invested in one of the greatest "bull run" stock markets of all time.