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Schannep Investment Advisors, Inc.
Your future is why we're here.
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The Name Of the
Game is to Beat Inflation |
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Inflation is the
gradual rise in the price of goods and services. The rate of this rise has
historically averaged about 3% with a considerable variation. With the
compounding effect, this equates to prices generally doubling every 24
years.
The only way to measure how fast your money is really growing is to
subtract the inflation rate from your investment returns. The charts below
show that since 1926 not only do stocks outperform bonds, but beat them by
4x once inflation is taken into account.
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Stocks have always
outperformed bonds . . .
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. . . But after inflation they really shine
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Investment Growth Without Inflation
Stocks outperform
Bonds by 2:1
US T-Bills by 3:1 |
Investment Growth Reduced by Inflation
Stocks outperform Bonds 4:1
US T-Bills by 11:1
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Past performance is no guarantee of
future results.
( Return to Investment Primer
Index )
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Securities offered through
First Allied Securities, Inc. A register broker/dealer. Member FINRA/SIPC.
Schannep Investment Advisors is a registered investment
adviser in the state of Arizona. First Allied Securities, Inc. does not endorse or
support this web site, nor are they affiliated with Schannep Investment Advisors,
Inc.
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