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What are the point of mutual funds/ stocks if they reflect the economy?

September 4th, 2010 | | Tags: , , , | 3 Comments | |

coins

Let’s say you invest and your stock value goes up 20 years from now, but that also means theres inflation so technically your not making a real profit..your just keeping up with the value of 20 years from now..

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3 Responses to “What are the point of mutual funds/ stocks if they reflect the economy?”

  1. El Guapo Says:

    Jeff is right. It’s good to think about these things, but historically stocks have averaged about 9-10% growth per year, while inflation has averaged around 3%. Stocks have been the best long-term investment, in terms of outpacing inflation.

  2. jeff410 Says:

    Inflation varies. In the long term stocks outperform inflation, by about 7-8 percent.

  3. Max M Says:

    Inflation does apply but if the stock goes up at a faster pace, you just beat inflation. The opposite is true too.

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