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Inflation is Hard to Hedge with Equities
Chart #1: Stocks are not historically reliable hedges for inflation
Dissimilar Direction
Balanced funds are susceptible to inflation risks (2022 & 1970's) and also deflation/depression risks (1920's)
Chart #2: Income from Systematic Withdrawal is Subject to Both Risks
Deflation
Inflation
Reinvestment Risk Can Threaten Income Security
Chart #3: Deflations/Depressions create reinvestment risks from short-intermediate and callable bonds rolling-over at lower rates
Source: www.Macrotrends.net
Based on Average yearly yield of 10-year Treasury Bond
The Price of $10,000 Annual Income
From10 Year Treasury Bonds (2022-1982)*
1992
$142,653ell
2020
$1,123,595
2012
$555,556
2002
$216,919
2009-2021 Federal Reserve QE Inflated
the Price of Secure Income for Seniors (Rollover Risk)
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