| Inflation-Linked.com
Inflation
poses a threat for fixed-income investors because it erodes the
buying power of income received in the future, which, in turn, reduces
a fixed-rate investment's real rate of return.
A clear example of the effects of inflation can be made when you
consider that $10,000 in 1980 will only buy $4,806 in goods today.
If you invest in fixed-rate bonds or CDs, you've already made a "bet" on inflation, whether you know it or not. Traditional fixed-rate
investments may not provide the real return investors need during
high periods of inflation.
Many individual investors take a well-balanced approach
in allocating investment dollars across various asset classes. With
the recent advent of inflation-linked investments, a whole new asset
class has been created to incorporate into asset allocation strategies.
Inflation-linked investments are a crucial part of a well-diversified
fixed-income portfolio.
This site is intended to provide investors and investment professionals
the information they need to understand how inflation-linked investments
can help protect an investment portfolio.
Inflation-linked investments may help today's investment buy
tomorrow's goods and services.
|
Current Inflation Rate:
4.08% (Dec 07)
| Calculated as:
|
Dec 07
|
210.036
| |
-Dec 06
|
201.8
| | |
8.377
| | ÷
Dec 06
|
201.8
| | |
4.08%
| |
|
|
|
CONSIDER THE EFFECTS OF INFLATION:
First
Class Postage Stamp:
• 15 cents in 1979
• 41 cents in 2007
• An Increase of
173%
One
Gallon of Regular Gas:
• 86 cents in 1979
• $3.00 in 2007
• An increase of
249% and rising...
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