Inflation erodes the value of a nation’s currency. In an inflationary environment, a roti canai that once cost RM0.20 may now cost RM1.20. There are a variety of factors that influence inflation and arguments about its root cause, but for consumers and investors, the end result is the same. Prices rise. For investors, the key to making money in an inflationary environment is to hold investments that increase in value at a rate in excess of the rate of inflation.
Posted on: Fri, 27 Jun 2014 23:43:08 +0000
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