If I own EURO STOXX 50 and this year it made me 6% profit but inflation is 5% in all europe that means I made only 1% inflation free profit
What is the solution?
Maybe you get divs as well not only cap gains. So you can add this up.
But if you have 0% divs and cap gains are 6%, yes your profit of this year in real terms is 1%.
Its ok, it has been very shitty like last year. But thats normal in investing biz, you sometimes have a few years which are not so good.
Best to look over 5-10 years.
But lets say you have not had good gains over a few more years, maybe its a good time to crucially analyze your portfolio and add some Bitcoin (the national currency of the biggest internet only nation having an isolated political system to national fiat currencies or other altcoins, which have similar political systems to a modern nation state) to it and outright ommodities or commodity producing emerging market companies (tricky, you need some time and effort for smooth execution) etc etc.
One other thing could be to critically analyze the underlying currency (eur) of your stocks and ditch euro partially and instead switch stocks primarily domiciled in places outside euro, e.g. chf/nok/gbp if you want to stay in Europe the geographical spot.
In 2020 inflation was 2% and this was Europe target for long term!
They are incompetent at best, pure evil at worst. Wont be reached in real terms. Maybe they can put on a show to display this but it wont be fun unless one likes motor oil and bug meat.
Should I be worried in the future?
Yes and no, the future is unknown. Tides turn fast, so need to worry too much. Just be very critical and agile to act fast, should smth change.
Inflation kills the social cohesion, so keep that in mind. Its not an end of world doomsday thing but still smth to consider.
Do you think inflation will be controlled by Europe and put down to 2% ?
No. It never will as long as the current structure stays. It cannot since the debt is way too high. Same for usd. Way too much debt.
After the debt has been inflated (or defaulted), it will be different.
Inflated will be the easy choice, defaults are hard since politicians need to select who pays the default while inflation everyone pays it clandestinely while the culprits pay the least and the poor pay the most (so this is preferred by the ruling structure).
Might be possible to profit from this too but then you gonna be hunted down.
I can't believe people still living with 5% inflation and no revolution yet.
Its mostly hidden, thats why we should eat bugs and plant based or lab meat burgers. In the not so distant years it became less hidden, maybe with the delicious bug meat it can be credibly manipulated down again, thats possible.
But it wont be for "real", meaning you will still feel cheated and your life style be down bad in real terms.
No revolution soon as can be witnessed in Argentina or Turkey. There is still a lot of upside in Europe regarding inflation. Its only logical since they are already like any banana republic (arbitrarily enforcement of laws, "weird" laws, only cronies who profit, masses which get ducked on the regular, heavy propaganda), so the currency following this trajectory is only a matter of time.
Revolutions also primarily happen if people are convinced the next step thereafter will be one up (which might be a fallacy), not because its constantly down (which is the mood in Europe).
Europe is also in a pretty bad spot, being ducked hard by their master Usa, but then at the same time cheap commodities by the Brics dont flow well any more. Demographics is horrible too and the currency very sick and structurally unsound.
Id mentally prepare for like 20% or more real inflation in the near future in the things you like the most (what this can be is what they currently want to ban/restrict/deride/demonize).
