Asymmetric Finance

Asymmetric Finance

Share this post

Asymmetric Finance
Asymmetric Finance
Are You Really Protecting Your Purchasing Power?

Are You Really Protecting Your Purchasing Power?

You need 7.9% a year not to lose money

Apr 13, 2022
∙ Paid
3

Share this post

Asymmetric Finance
Asymmetric Finance
Are You Really Protecting Your Purchasing Power?
Share
Ducado (1483-1488), Portal Fuenterrebollo

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.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Asymmetric Finance
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share