How inflation swindles the equity investor

Inflation can negatively impact equity investors by decreasing the purchasing power of their investments. As prices for goods and services rise, the value of an investor’s dividends and capital gains decreases. This can lead to a reduction in overall returns and make it more difficult for investors to achieve their financial goals. Additionally, inflation can also lead to increased interest rates, which can make it more difficult for companies to borrow money and potentially decrease stock prices. It’s important for investors to keep an eye on inflation and consider how it may impact their investments.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.

 

At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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