because stocks and funds can offset or completely offset the inflation rate through their higher yields relative to bank deposits;

the general inflation rate is calculated as follows: current inflation rate = (current price level-base price level)/base price level;

Explain this problem in a popular way through an example (the data are all hypothetical, and the actual situation generally does not have such inflation rate, interest rate and stock fund return rate):

Suppose I have 1 yuan, I can buy 1 eggs, the annual inflation rate is 1%, and the general bank deposit interest rate is lower than the inflation rate, assuming 5%, and the stock and fund return rate is generally higher than the bank deposit interest rate, assuming 8%;

If I put this money in my hand, I will have 1 yuan one year later, but the price of 1 eggs will become 11 yuan, and I can only buy 91 eggs with 1 yuan.

If I deposit this money in the bank, I will have 15 yuan a year later, and the price of 1 eggs will become 11 yuan. I can only buy 95 eggs from 1 yuan a year ago and 15 yuan now.

If I invest this money in stocks and funds, I will have 18 yuan a year later, and the price of 1 eggs will become 11 yuan. I can only buy 98 eggs from 1 yuan a year ago and 18 yuan now.

because the interest rate is dead, and it is basically not higher than the inflation rate when inflation occurs, but the returns of stocks and funds are uncertain. If I operate my 1 yuan in the capital market very well, and the return rate is higher than the inflation rate, then I have not only completed the preservation of capital, but also gained a profit.

Let's talk about gold. There is a great person who said that when I believe in the US dollar, I believe in gold. The dollar is a credit currency, and the credit currency itself has no value. It is the country that guarantees the purchasing power of the currency, that is, everyone is willing to recognize the value of these papers, so these papers are valuable. Isn't it true that gold is recognized as universal equivalent, because it is scarce and easy to preserve, but all scarce things are not valuable, but people think it is valuable, or all those who can afford and are willing to spend money for gold think it is valuable, and once those rich people abandon gold and are no longer willing to pay for it, it will be worthless ~