5. Equities Help Protect Purchasing Power
Stocks, Bonds, Cash Equivalents and Gold vs. U.S. DollarInflation-Adjusted Returns for the Period from December 31, 1977 to June 30, 2014
Investing to Combat Inflation
Inflation, by definition, drives prices up and pushes the purchasing power of your saved money down. While not much attention has been paid to inflation since the early '80s, recent fiscal concerns have many wondering how much inflation will impact our economy in the years ahead. Stocks, despite their recent travails, have done the best job of providing returns after inflation is taken into consideration.
The Bottom Line
- Over time, inflation shrinks buying power.
- Speak to a financial advisor for help creating an investment plan with the goal of protecting purchasing power.
Another reason to be an equity investor: History Favors a Return to the Mean
Are You a Financial Advisor?Register for our Advisor Website
——or——Sign In for more on 2020 Vision
Important Legal Information
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund’s investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
Franklin Templeton Distributors, Inc.
For US residents only.