08.11.21
This Is a Terrible Time for Savers
by: Neil Irwin
The combination of high inflation, strong economic growth, and very low interest rates has meant that “real” interest rates are lower than they have been in modern times. This means the choice for a saver is stark. They can invest in safe assets and accept a high likelihood that they will get back less, in terms of purchasing power, than put in. Or they can invest in risky assets. “For people who are risk averse, they have to get used to the worst of all possible worlds, which is watching their little pool of capital go down in real terms year after year after year,” said Sonal Desai, chief investment officer of Franklin Templeton Fixed Income.
Read the full article on New York Times.