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If you invest in real assets, such as stocks or real estate, your savings should be more or less safe from inflation.
by brap 4y ago
If you invest in real assets, such as stocks or real estate, your savings should be more or less safe from inflation.
- klipklop 4y agoSo far in 2022 this has not been true. Compare the 1 year of VOO to inflation. USD inflation, no idea but like +8-12% depending on what you are trying to buy? VOO -20%. Ouch. Personally this year I have had better results holding cash than investing it to hedge.
- brap 4y agoThere are always exceptions. Fundamentally, when both prices and wages go up, there’s no reason to expect companies to lose real value. AFAIK in 2022 we’re seeing cost-push inflation and wages haven’t really gone up, which could partially explain why companies are having difficulties producing and selling.