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InvestmentMAGE
P&P Score: 99.94   Points: 629.31   Accuracy: 42.52%   Average Pick Score: 1.05   Annual Return: 11.37% (39.07% since 12/17/08)  

InvestmentMAGE's Blog : Psst! Want a hot investment tip?

Date January 9, 2009  Edited: January 19, 2009    Comments Comments (3)    Rate this post Recommend This Post (159)   
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Make a solid choice for these trying times.

With more aftershocks of the credit crunch a possibility and a continued global recession enduring, the double benefit of a strong dividend yield plus the backing of the U.S. Treasury make a Treasury bond fund a favorable option.

However, many fear that the huge continuous injections of money to stimulate the economy will ultimately result in persistent inflation, which will likely result in higher interest rates and lower quotes for bonds. That makes an inflation-protected Treasury bond fund like the iShares Lehman TIPS Bond a sensible fixed-income vehicle.

Or Perhaps I should have said,

Psst! Want a hot investment? TIP!

What do you recommend for an inflationary environment?

Recommendation:
TIP: iShares Lehman TIPS Bond

Caveat:
Although Chairman Bernanke will be doing everything in his power to fight deflation, he could fall into the Prohibition Paradox, in that he creates the very thing he is trying to prevent.

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3 Comment(s):

Author brandtrader     Date January 11, 2009 16:23 Abuse this post Report Abuse
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TBT is a much stronger bet.
Author InvestmentMAGE     Date January 13, 2009 15:34 Abuse this post Report Abuse
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Hello brandtrader,

I like that one too.
http://www.peopleandpicks.com/blog/InvestmentMAGE/2761199/

Good Trading,

MAGE
Author InvestmentMAGE     Date January 20, 2009 11:05 Abuse this post Report Abuse
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In todays January 20, 2009, Financial Times:


Lex,* suggests the US index-linked bond market is out of whack and it presents an opportunity for investors. If Tips prices are unusually depressed, and their yields artificially high, investors should buy the bonds; where else can you get a 4.5 per cent risk-free real yield?


*the Financial Times (Britains Wall Street Journal) agenda-setting column on business and financial topics


MAGE
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