Quote of the day by Rudy Havenstein: “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars, when you had hair.”

Inflation steadily reduces the value of money. What you can buy today costs more tomorrow. This impacts investments by eating into returns. Investors must focus on real gains, not just nominal ones. Certain assets like stocks and real assets can help preserve wealth. Cash loses value during inflation. Understanding inflation is key for smart investment decisions.