If you own things denominated in dollars, those assets will lose
value under inflation.
Not exact matches
With the
inflation - adjusted
value of small business loans still
under 80 % of what it was in 2007, that's a concerning trend.
Under the triple lock system a guarantee is made that state pensions will rise in line either with
inflation, average earnings, or 2.5 %, depending on which is of the three is of the highest
value.
The resulting «bracket creep» pushes those who receive even modest salary increases, which have increased in nominal terms
under inflation but not in terms of real
value, into higher tax brackets.
In principle, the
value of «real» assets, such as your house and shares of stock in companies, do not decline
under inflation.
After the analysis is done, it would still be reasonable to consider how the real
value of the stock returns
under various
inflation conditions might impact your investment plans and goals.
So if the dollar is
under inflation pressure and falling in
value you simply don't want your
inflation protection paying you in dollars that are also depreciating.
These days
inflation is running at 3.1 % annually, which means that even if you avoid the risks of the market by stashing your cash
under your mattress, you're still losing 3.1 % of your money's
value every year.
The Russian economy's in excellent shape:
Inflation's at a post-Soviet era low of 3.7 %, unemployment's at 6.6 %, GDP is forecast to grow 3.5 %, and the rouble's estimated to be 20 - 30 %
under -
valued on a PPP basis.
Filed
Under: investing, money Tagged With: compounding,
inflation, money basics, opportunity cost, risk, time
value of money
Money
Under 30 shows that when adjusted for
inflation, average U.S. real estate
values gained less than 1 percent in the 20th century.