Monday, June 21, 2010
NOMINAL VALUE, vs. REAL VALUE
WELL the BLACK & RED LINES are your REAL PURCHASING POWER, arrived at by subtracting out the actual pricing of commodities [ thin black line ] you'd have to price with your nominally valued cash [ numerical value of dollars ].
This is why watching the NUMERICAL VALUE of INVESTMENTS is dangerous. We get left with a false sense of security, while the real VALUE PURCHASING POWER of our investments drains away without our noticing.
Its an ugly picture but someone has to post it. This is why your investments must beat the REAL VALUE of INFLATION, + the LOSS of TAXES by a huge margin. This is why there is NO SUBSTITUTE for VICTORY.
Sign up for a short term trial today while its still available. I think you will like the results.
Good Luck All.