Danielle Robison argues the US dollar has been debased since the Federal Reserve started in 1913, making inflation nearly certain over time. Real investors should build strategies around that predictable trend instead of speculating on short-term rates or prices.
If anyone looks at the long term history of the dollar, it just keeps getting debased. When the Fed started back in 1913-1914, a dollar now is only worth about 3% as much as it was back then. We all know the Fed has an inflationary mandate. They'll just tell you they target 2% inflation. As we know, it's been running higher than that for almost two years now. But the point is, is that you can't really count on a lot of things in investing. No one really knows the future. People are always trying to predict the future of interest rates or prices or all that. But one thing almost completely predictable is long run inflation. So let's take one of the few things that's a near certainty and then figure out how we can profit from that. That's really the difference between being an investor and being a speculator.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
