MTC Market Compass

September 2026

The Situation: The Challenge of Inflation

Most investors understand that inflation increases the cost of goods and services. What is often overlooked is its impact on investment returns and long-term financial planning. Over time, even modest inflation can significantly increase the amount of capital required to fund retirement and other spending needs. This creates an important distinction between nominal returns and real returns. A portfolio may generate positive returns and still fall short of its objectives if those return fail to keep pace with rising costs. Successful investing is not solely about growing assets. It is about preserving purchasing power. At MTC, this principle is reflected in one of the core pillars of our investment philosophy: Real Returns Matter.