This article is one that is worth reading and considering carefully:
The reality of the market is that inflation has increased significantly and is only getting worse. From a savings perspective, this means that you have to earn the inflation rate plus what your target earnings is. If you are trying to earn 10% on your money, you'll need to achieve that plus the inflation rate, bringing your target rate to 20+%. Other savings vehicles will need to be pursued.
1 comment:
Yes, I couldn't agree more. Part of the economic problems, the housing crisis included, is that with a weaker dollar, people are having bills and expenses go up that they are not expecting. Another part of this is that India and China are rising economic powers - like Friedman suggests in his book - and they are now competing with us more.
This is not a bad thing in the sense that it is wonderful to see others in the world be successful as well, but it is one that we must get used to and adjust our lifestyles accordingly.
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