The US dollar lost 30% of its value over the last 6 years.
u/TonyLiberty ·
Reddit — r/FluentInFinance
· May 14, 2026 at 16:46
· ⬆ 59 pts
· 💬 21 comments
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Summary
The post argues that US dollar purchasing power has declined ~30% over six years due to massive money printing (especially 2020–2023), leading to persistent inflation.
The author’s thesis is that savers should shift away from cash into assets that historically outpace inflation: S&P 500 index funds, real estate, hard assets/commodities, and personal skills.
Quality assessment: This is opinion/commentary with basic economic reasoning, not original research or data-driven DD. More noise than well-researched analysis.
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**The US dollar lost 30% of its value over the last 6 years.**
Think about what that actually means.
**$100K in 2018 is equivalent to $70K today.**
When the government prints more money, your dollars lose their value.
You pay more for the same things. Groceries. Rent. Gas.
Between 2020 and 2023, the U.S. government printed $6+ trillion into the economy. The Fed kept interest rates near zero for years. It felt like free money.
**But there's no such thing as free money.**
When you flood the economy with cash, each dollar buys less. More dollars chasing the same goods. Prices rise. Your purchasing power shrinks. It's basic supply and demand.
The worst part? Wages don't keep up.
**Here's what you do long-term:**
1. S&P 500 Index Fund in your Roth IRA (\~10%/year historically, tax-free)
2. Real estate (beats inflation over time)
3. Hard assets & commodities
4. Invest in your skills and income potential
Real estate historically beats inflation over time, as rents and property values rise with general price levels. The post recommends real estate as an inflation hedge; IYR (iShares US Real Estate ETF) offers diversified exposure to REITs without direct property ownership. Real estate investment trusts can pass through rising rental income, providing a cash-flowing inflation hedge. Higher interest rates hurt REIT valuations, potential cap rate compression, and recession risk for commercial real estate.
Gold and hard assets have historically preserved value during periods of currency devaluation and high inflation. The post explicitly recommends “hard assets & commodities” as a hedge against Fed money printing; GLD provides liquid, tradeable exposure to gold. Gold acts as a portfolio diversifier and store of value when the dollar weakens. Rising real interest rates, dollar strength, or lack of income yield.
The S&P 500 historically averages ~10% annual returns, which tends to outpace inflation over long periods. With the dollar losing value, investors need assets that grow in nominal terms to preserve purchasing power; a low-cost S&P 500 index fund is a simple way to achieve that. Hold a long position in SPY as a core inflation-hedging component of a diversified portfolio. Short-term market volatility, recession reducing earnings growth, or a sustained bear market.
This Reddit post, published May 14, 2026,
features u/TonyLiberty
discussing IYR, GLD, SPY.
3 trade ideas extracted by AI with direction and confidence scoring.