Inflation Risk. The risk of a loss in your purchasing power because the value of your investments does not keep up with inflation. Inflation erodes the purchasing power of money over time - the same amount of money will buy fewer goods and services. Inflation risk is particularly relevant if you own cash or debt investments like bonds. Shares offer some protection against inflation because most companies can increase the prices they charge to their customers. Share prices should therefore rise in line with inflation. Property also offers some protection because landlords can increase rents over time.
Appears in 7 contracts
Samples: Client Agreement, Client Agreement, Client Agreement
