Nominal return vs real return, and inflation / Fundamentals of investments / Episode 5

We explain the difference between nominal returns and real returns (or nominal interest rates and real interest rates), highlight the impact of inflation on investment returns, and introduce the Fisher equation.

We also have a detailed lesson on this topic with examples on our website:
www.initialreturn.com/real-return-vs-nominal-retur…

00:00 Intro
00:35 The impact of inflation on returns and interest rates
04:21 Fisher equation
07:42 Nominal return ≈ real return + inflation

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#investing #inflation #interestrates