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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 : Warren Buffett recommends TIP and TBT.

Date March 3, 2009    Comments Comments (10)    Recommended (215)   
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In his annual letter to Berkshire Hathaway shareholders released Saturday, Buffett warns of Inflation and the Treasury Bond Bubble, excerpts below, with my past related blog.


Buffett said that with the U.S. Federal Reserve and Treasury Department going 'all in' to jump-start an economy shrinking at the fastest pace since 1982, 'once-unthinkable dosages' of stimulus will likely spur an 'onslaught' of INFLATION, an enemy of fixed-income investors.

INFLATION



http://www.peopleandpicks.com/blog/InvestmentMAGE/2765259/Psst--Want-a-hot-investment-tip/

'The investment world has gone from underpricing risk to overpricing it,' Buffett wrote. 'Cash is earning close to nothing and will surely find its purchasing power eroded over time.'

http://www.peopleandpicks.com/blog/InvestmentMAGE/2762425/Excuse-me-Mister-can-you-%85/

'When the financial history of this decade is written, it will surely speak of the Internet bubble of the late 1990s and the housing bubble of the early 2000s,' he went on. 'But the U.S. Treasury bond BUBBLE of late 2008 may be regarded as almost equally extraordinary.'

Treasury Bond BUBBLE



http://www.peopleandpicks.com/blog/InvestmentMAGE/2761199/Kobayashi-Maru/

Recommendation:
Buy: TIP, TBT
Caveat: Warren Buffett is in his Gtterdmmerung. (twilight)

Good Investing,

MAGE


Disclaimer: Past performance does not guarantee future results. You should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.


10 Comment(s):

Author InvestmentMAGE     Date March 3, 2009 09:26 Abuse this post Report Abuse
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I apologize in advance if my inflation graphic offends. It is just such a vivid image of inflation, that I wanted to share it, though some may possibly find it in poor taste.

MAGE
Author InvestmentMAGE     Date March 3, 2009 11:06 Abuse this post Report Abuse
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Hey JDShots,

Great Question! Yes, both are longs. TIP is a pure inflation play.
TBT is a short Treasury Bubble play. Or you could Sell TLT.

Thanks for your comment.

MAGE
Author JDShots     Date March 3, 2009 11:15 Abuse this post Report Abuse
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OK got it.

What do you think about PST?
Author InvestmentMAGE     Date March 3, 2009 11:47 Abuse this post Report Abuse
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Hey JD,

That's a GREAT Question.

If you go to my profile, and click on my 'Picks', then click on 'Points' to sort the winners to the top, you will see TBT, PST, and TIP are in my top four picks.

MAGE
Author JDShots     Date March 3, 2009 12:03 Abuse this post Report Abuse
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Copy that -S!
Author JDShots     Date March 3, 2009 12:11 Abuse this post Report Abuse
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I'm wondering if I should end and reload my picks with points over 20, to lock in the gains and increase overall accuracy. What do you folks think?
Author InvestmentMAGE     Date March 3, 2009 13:14 Abuse this post Report Abuse
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Keep in mind you will lose one day of trading points (+ or -)

MAGE
Author JDShots     Date March 3, 2009 13:27 Abuse this post Report Abuse
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But if I do it before market close, won't the picks change from pending to open the next trading day?
Author InvestmentMAGE     Date March 3, 2009 14:30 Abuse this post Report Abuse
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Yes, I think you are right. With the price from yesterday's close.

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