Say you bought shares of a company 3 years ago, and you know your wages and your savings in terms of dollars has been devalued by more than 30% over those 3 years, AND the company you bought has continued to be profitable, their products are likable and valuable, and they continue to innovate, then what would it take for you to trade those shares back for dollars?
I've watched companies valuations drop in all this economic mess especially as bankers tamper with rates, meanwhile the companies are still growing, innovating, and some have seen profit margins increasing. Even more, our USDs just don't buy as much of anything as they used to. So I'm wondering how many people really take this devaluation of the dollar into account when they store their earnings/wealth in the market then later make the determination that they should invest in dollars instead, and trade back.
Take for example, cars. Most people can't buy a car in a single transaction. Car prices shot up over 30% in the past 3 years. Astounding, but here we are. Our new reality. So, if you were putting money in the market, heck, buying shares of your car manufacturer for say $100 per share, then you need to at least break even on those savings. Do you know how much those shares should be valued at now for you to trade back for USDs just to break even? Also, just curious, is anyone investing just to break even? If so, besides the stock market, what is the right/safest strategy JUST to maintain purchasing power in this economy where purchasing power is typically very subjective (such as when you're building funds to buy a car or house)?
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