April 30, 2014

Don't ignore inflation!

How Inflation Affects a Portfolio by: Craig L. Israelsen, April 28, 2014
“In the years since 1970, the median annual rate of inflation, as measured by the Consumer Price Index, has been 3.37%; the average rate over the past 44 years has been 4.27%.” “The average is higher than the median in this case because of three particular years — 1974, 1979 and 1980 — in which inflation exceeded 12%, skewing the average upward but with virtually no impact on the median.” Read the article for more info and to view the bar graphs.

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