Sunday, April 3, 2011

Bonds With Inflation?

The gurus automatically tell you to avoid bonds when there’s a threat of inflation.

They are wrong because they never get into the whole story, owing to ignorance or indifference.

Paradoxically, inflation could be an opportunity for potential purchases of low-cost bond mutual funds, or ETFs, with low duration, and with dividends that are periodically reinvested.

I have commented a good deal about bonds and inflation in the past and will in the future. ( See the Earl J. Weinreb NewsHole® comments.)

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