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.
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.
Jun 22: 9.1% Jul 22: 8.5% Aug 22: 8.3% Sep 22: 8.2% Oct 22: 7.7% Nov 22: 7.1%
The only way I can understand your comment is if you are confusing inflation (change in price level) with price level itself.
Inflation is slowing down and has been for months.
[0] https://www.statista.com/statistics/273418/unadjusted-monthl...
$1m in the right assets could become $4m in youre scenario with the same purchasing power of the $1m before inflation.
In reality, you’ll probably lose some value though because the people holding cash that now have far less purchasing power, which torpedoes demand. Still better to be in assets than cash though.
Yes, the "place bets in a rigged casino to beat inflation" strategy.
A terrible idea for people over 50 that are looking for a rock solid retirement solution but when the government is robbing savers, one of the only options.
That $1M nestegg will feel like $250k in a few years.