I would like to understand a few things about inflation.
Let's suppose I change my currency from EUR to USD, for example, 10k EUR to USD.
Now I invest it in the US Stock market. Let's do an example in the short term and in the long term.
- A. 2 years
- B. 10 years
To understand how much I lost in terms of inflation should I consider just the average of inflation during this period of time or should I consider the cumulative inflation?
Let's suppose in the short term I invested from 2020 until 2022. The long term from 2013 to 2023.
What will be the difference in terms of losing money on the stock?
To recover that inflation which should be the gain of Us stock to get some profit?
What is better, keeping for each year an average return and inflation rate or adding minimum and max to have the average over all the years?