We have taken a look at the effect of inflation on your money’s purchasing power and the importance of having some your assets in stocks, bonds, or an investment vehicle that is indexed to inflation. Clearly, it is not possible to have all cash reserves indexed or protected against inflation. Inflation has many ways ofContinue reading “Is Inflation an Implicit Tax?”
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Inflation, Interest Rates, and Dividends
Most people believe it is impossibly hard to understand how interest rates and dividends affect the value of the share price of a stock, but if you can understand opportunity cost then you can understand these concepts. Understanding these concepts will not only make you a better investor, but they will also allow you toContinue reading “Inflation, Interest Rates, and Dividends”