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

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 money 20 years from now..

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September 4th, 2010 at 10:49 pm
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.
September 4th, 2010 at 10:49 pm
Inflation varies. In the long term stocks outperform inflation, by about 7-8 percent.
September 4th, 2010 at 10:49 pm
Inflation does apply but if the stock goes up at a faster pace, you just beat inflation. The opposite is true too.