When I was growing up in the Midwest there was a campaign running on TV talking about the silent killer.
The silent killer according to the ad campaign was high blood pressure.
You can’t see high blood pressure or feel its negative effects…that is until you fall over dead.
What high blood pressure is to the body, inflation is to your investment portfolio.
You can’t see inflation but it’s there and it’s a real killer.
Living in Silicon Valley I can’t tell you how many times I’ve had a high flying venture capitalist or private equity person tell me they have $500,000 or even a $1,000,000 in cash for the past ten years.
The secret they reveal to me after a few drinks is they don’t know how to invest it and that having it in cash is safe.
And then I show them a price chart of the US Dollar over the past ten years and say, that’s what you’ve lost in purchasing power…
…even though your account balance is the same it buys 20% less.
But they can’t “see” the lost $100k or $200k and their brain doesn’t get it.
And I find a lot of people miss the point on how inflation is hurting people’s wealth.
So with that I want to take a giant step back and show you three powerful charts that puts inflation in its place.
You can see the three charts right here.