What is the risk of buying power?
2003-12-17 12:07 Updated Source: Xinzhi.com Page 1 / Total 1 page << Previous | Next >> Purchase power risk is a change, investment of total purchasing power of assets Should be rationally to handle the ability to purchase risks. Otherwise, inflation will erode light of the purchase force of investor wealth. Purchase risk is different from interest rate risks and market risks, because a investor may lose purchasing power in the case of its price, many investors mistakenly believe that the currency is more rich, this currency hallucong has enabled investors to ignore the goods Expanded problem. Investors can only overcome the monetary illusion problem only on the actual rate of return, and only when the actual rate of return is greater than inflation, that is, when the actual rate of return is greater than the inflation, the purchase power is really growing. Article Source: Xinyi Net
