purchasing power risk

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Purchasing power risk

Related: Inflation risk

The risk that unexpected changes in consumer prices will penalize an investor's real return from holding an investment. Because investments from gold to bonds and stock are priced to include expected inflation rates, it is the unexpected changes that produce this risk. Fixed income securities, such as bonds and preferred stock, subject investors to the greatest amount of purchasing power risk since their payments are set at the time of issue and remain unchanged regardless of the inflation rate.

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inflation Inflation Risk			To avoid purchasing power risk, you''ll want to select a fixed deposit certificate of deposit only after determining if the fixed interest rate will match or surpass headline inflation. Fixed Rate CDs Investment or Savings? by Lynn Stewart / Finance and Investment community Every investment has some risk, even if it is only purchasing power risk. The accountant as investment adviser by Johnson, Donald W. / The National Public Accountant The main types of risk that can affect a portfolio are: -- Inflation risk: Also known as purchasing power risk, inflation risk is the possibility that the value of investments will not keep pace with continually rising prices of standard goods and services. Do You Own Too Much of Any One Stock? Schwab Center for Investment ... by Business Wire			Purchase Acquisition purchase agreement Purchase and Resale Agreement Purchase and Sale purchase and sales department purchase contract Purchase Fee Purchase Frequency Purchase from Foreign Seller Purchase Fund Purchase Group Purchase Loan Purchase Method purchase money mortgage purchase option Purchase Order purchase price Purchase Tax Purchase-Money Mortgage Purchasing Manager Purchasing Managers Index Purchasing Managers' Index Purchasing Power Purchasing Power of the Dollar Purchasing Power Parity purchasing power risk pure debt Pure discount bond Pure Expectations Theory Pure Food and Drug Act Pure Index Fund Pure Monopoly pure notice statute Pure Play pure race statute Pure Risk Pure Yield Pickup Swap Purpose Credit Purpose Loan Purpose Statement Push Money Put Put an Option Put Bond Put Guarantee Letter Put On Put Option Put Price Put Provision Put Ratio Backspread Put Spread			Purchasing Groups Purchasing Groups Purchasing Information Management System Purchasing Instruction Purchasing Management Association Purchasing Management Association of Boston Purchasing Management Association of Canada Purchasing Management Association of Chicago Purchasing manager Purchasing Manager's Index Purchasing Managers Purchasing Managers Index Purchasing Managers' Index Purchasing of Nontraditional Goods and Services purchasing office purchasing office Purchasing Online Tracking System Purchasing Operations Manual Purchasing parity power purchasing power purchasing power purchasing power Purchasing Power of a Dollar Purchasing Power of Money Purchasing power of the dollar Purchasing power parity Purchasing power parity Purchasing power parity Purchasing power parity Purchasing Power Parity Adjusted purchasing power risk Purchasing Power Standard Purchasing Power Standard Purchasing Price Change Purchasing price parity Purchasing Procedure Purchasing Support Directories Purchasing System Redesign Purchasing, Accepting, Invoicing, Disbursing Purchasing, Safety and Security Office Purchasing, Stores & Traffic Purchasing-power parity Purchasing-Selling Entity Purcussive Unconfined Vapour Cloud Explosion PURD Purda Purda purdah purdah purdahs purdahs purdonium Purdue Purdue Advanced Reactor Core Simulator Purdue Agricultural Air Quality Laboratory Purdue Airlink Purdue Alumni Association Purdue Animal Manure Solutions Purdue Automated Agricultural Weather Station

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