Why: Cash and standard fixed coupon bonds are heavily penalized by inflation because their payouts are frozen. Great companies, however, can raise their prices to match inflation, and their earnings (and stock prices) tend to grow alongside the broader economy.
🟩 Stock is a better investment
Why: Cash and standard fixed coupon bonds are heavily penalized by inflation because their payouts are frozen. Great companies, however, can raise their prices to match inflation, and their earnings (and stock prices) tend to grow alongside the broader economy.