Monday, March 1, 2010

World of Inflation

Today saving balk account is not a right choice exactly you look the inflation rate today and compare with bank financial interests like 1% you imagined you keep 10,000USD in saving account you will earn 1% in the future but the world of inflation is rise almost 5% a year.

This article will guide you alternative way about growth your money which way you choose between keep your money in bank or let you money earn profit in stock market



Inflation mean simple you can buy thing with 10,000$ today but next year maybe you must buy thing in 10,500$ it's higher price but you just have earn 100$ from your 10,000$ in saving bank if inflation still 5% every year for 3 year it mean your save money is decreed 12% is this fair? but most of people are choose to keep money with bank.

If you find some stock that can make profit 5-7% from dividend annual that mean it is profit 4% annual with inflation including.
Your investing is a right way in stock market or in bank if you not need to reduce your money 5% a year it not difference you buy a stock like P/E 100 without growth even it is no risk it shouldn't have P/E 100 right ??

choose the right invest to get more profit for your future.


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