Think of inflation as an increase in water level.
Are your assets pile driven into the bottom, like cash?
Or are you floating in a boat, like a stock?
What does it all mean?
There is a trade off with risk and return:
a) If you stubbornly want no risk, your wealth will slowly be robbed by inflation.
b) If you are leveraged into high growth stocks, you can be wiped out by a pull back.
It is an IQ test how you navigate the path in between.
