Are You Really Protecting Your Purchasing Power?
You need 7.9% a year not to lose money
For several decades, developed countries have been playing a game in which investment decisions and valuations were made in nominal terms. Inflation was presumed to be negligible and could be eliminated from the analysis.
Official inflation was targeted at 2%. This meant that investors preferred to disregard it without taking into account that over 10 years, this 2% annualized inflation became +20% of purchasing power loss.