Much publicity in the financial media tells about how TIPS funds
can legitimately inflate yields, in accordance with Securities
and Exchange Commission rules. It’s easy to be hoodwinked into
believing you are getting more than you are, while enjoying benefits
of inflation protection.
I have never been a fan of TIPS. I have always explained its
shortcomings on the return you get and tax bites. And how you
can avoid inflation’s effect on fixed income investments with
proper use of duration principles.
The
problem: Investors and those in the financial media are in
the dark about the use of duration principles. (See the Earl J.
Weinreb NewsHole® comments and @BusinessNewshole tweets)
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