Inflation - The inflation protector that's safer than gold

Saturday, March 13, 2010




1.	Inflation is dead, bond yields set to fall, says Goldman Sachs

2.	Why inflation is virtually guaranteed

3.	New data say deflation taking hold




1.	New "super indicator" is predicting another big downturn

2.	This could be the next country to fall apart

3.	"Atlas Shrugged" taxes blow up in Maryland’s face

4.	Top money manager rips CNBC and Jim Cramer

5.	Possibly the greatest mining boom of the 21st century

The inflation protector that's safer than gold

Tuesday, March 03, 2009
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Some argue that gold isn't a consistently dependable hedge against inflation. However, Treasury inflation-protected securities, or TIPS, are tied to the U.S. consumer price index. If the index inflates, your principal grows. If the index deflates, your principal shrinks... But when TIPS mature, you receive the CPI-adjusted principal or the original principal, whichever is greater.

In addition, the interest payment on TIPS rises with inflation. They're currently yielding around 6%.

Crux note: If you're interested in taking action on this idea, consider the iShares TIPS Bond ETF (TIP).

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Topics:		Inflation \| Bonds \| Income Investing

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