Behavioral Finance · weekly refresh

Cash Is Not Safe — It Just Loses Slowly

Real purchasing power of $10,000 in cash vs. stocks since 1970

Since 1970, $10,000 in cash has lost approximately 87% of its real purchasing power to inflation. $10,000 in bonds has grown to approximately $35K real. $10,000 in equities has grown to approximately $400K real. The 'safety' of cash is an illusion.

ALAN INTELLIGENCE

ALAN INTELLIGENCE · alanglobalintelligence.com

ALAN IntelligenceData as of 2026-10-31

Cash, nominal dollarsCash, real value (1970 dollars)S&P 500 price index, real value (1970 dollars)

Past performance is not indicative of future results. This material is for informational and educational purposes only and does not constitute investment advice, an offer to buy or sell any security, or a recommendation. Data from publicly available sources believed to be reliable but not guaranteed. All investments involve risk, including possible loss of principal.

alanglobalintelligence.com

ALAN GLOBAL INTELLIGENCE · alanglobalintelligence.comSource: S&P 500 price index (Yahoo Finance) and CPI (FRED CPIAUCSL); bonds are not charted · Computed 2026-11-11

What history says

Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.

Cash is guaranteed to lose purchasing power over any 10+ year period

There has never been a 10-year period since 1970 where holding cash preserved real purchasing power. The 'safety' of cash is nominal, not real.

Bonds preserve purchasing power; stocks grow it

Real bond returns of ~2-3% annualized barely outpace inflation. Real equity returns of ~7% annualized compound purchasing power exponentially. The gap widens dramatically over decades.

This is the chart for clients who say 'I just want to be safe'

Reframe safety: short-term safety (no nominal volatility) = long-term danger (guaranteed real loss). Long-term safety (real wealth growth) requires short-term volatility.

For your portfolio

Match each dollar to its job: cash for spending within the next couple of years, bonds for the middle horizon, equities for the decades — parking long-term money in cash for comfort has historically been the one 'safe' choice with a built-in real cost.

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For information and research only. Not investment advice. ALAN does not place trades or execute orders. Figures come from the sources shown and can lag the market; verify independently before making decisions. Past performance is not predictive of future results.