What does “adjusted for inflation” mean and how are they related to investment portfolios?
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Inflation is another name for simply printing more money, with nothing backing it up, thus devaluing it.
Currency was once backed by actual real gold. Now it’s backed by literally nothing and relies on trust alone.
Bread cost 25c xxx years ago.
Now it costs a dollar – why so?
Because the amount of dollars in circulation has quadrupled.
“Adjusting for inflation” means they’re printing money like confetti.
We should not simply accept INFLATION as normal as we’re led to believe.
We should be asking why DEFLATION isn’t the acceptable norm.
Inflation means you have to adjust the dollar value of everything, not just investments.
Note: this explanation is over-simplified.
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