How is your portfolio doing inflation adjusted

Here is a chart which shows the performance of the Dow Jones Industrial Average in both nominal and inflation adjusted terms. CNBC and the mainstream media never show you this chart. Its hard to make out on the chart but if you invested in the DOW in 1999 you would be roughly flat in nominal terms. Not bad but not really good either. But it gets worse. In real inflation adjusted terms your portfolio is down approx. 30% thanks to inflation. Who is responsible for this? The unconstitutional Federal Reserve.

What this clearly shows is that stocks do not necessarily outpace inflation as everyone on CNBC promises you. They have to keep generating reasons for you to buy more and more stock. There are also those incompetent money managers who promise to "professionally manage your money" for only a 1-2% fee per year.

Black Swan Insights


1 comment: