The past year was a wild one for finance, with all-time highs for the annual inflation rate at 6.8% and S&P 500 market returns at nearly 27%.

But here is an even crazier, less well-known statistic that will blow your mind:

40% of ALL U.S. dollars in circulation were printed by the Fed in the past 12 months.

Read that sentence again...

Insane right?!

The M1 money supply has increased by 52% since COVID hit, resulting in a record-breaking annual inflation rate of 6.8% as of November 2021. As you can see from the chart below, this is a staggering increase in the federal money supply largely driven by COVID relief funding and pandemic economic stimulus efforts.

M1 Money Supply

So what does this mean?

This means if you’re keeping your money in a savings account or money market, your money could be actively losing value — very quickly.  

There’s a reason why stocks have skyrocketed this year. Investing may help you grow your money instead of losing value to inflation. By investing in a low-risk, balanced portfolio, you could ride the wave of growth as more people have more money to invest in the stock market.

This is what we’re doing here at Infinite Giving to help nonprofits safely and easily invest funds using our robo-advisor platform.

If you’re interested in preserving capital value against inflation and growing your reserve funds, contact us today.