This Inflation-Fighter Is Too Expensive

This Inflation-Fighter Is Too Expensive
News from DailyFinance:

There’s nothing that sounds more ludicrous than accepting a negative interest rate on your money. At least in the case of a certain type of Treasury bonds, though, negative rates suggest that investors are willing to pay up for protection against a potentially huge threat looming on the horizon: inflation.

But what’s particularly frustrating for income-seeking investors is that despite Treasury inflation-protected securities, or TIPS for short, seeming to be poised for a big ramp-up in consumer prices, those price increases haven’t for the most part shown up yet. The net result may be that although long-term investors have seen some big gains from TIPS they bought years ago, current investors are likely dooming themselves to poor returns going forward.

Understanding TIPS
The way that TIPS work is a bit more complicated than a regular bond. Typically with bonds, you invest a certain amount, collect interest payments along the way, and then get your money back at maturity. With inflation, you expect that the money you get back years down the road will have less purchasing power than the money yo…………… continues on DailyFinance

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Tips on investing in holding companies
News from Business Today:

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Tips to invest in holding companies – firms which hold shares of other companies

Sowmya Kamath        Edition: February 2012

For investing in a company we often look at numbers such as cash flow, profit growth and price to earning ratio. However, these do not suffice for companies whose main function is to hold shares of other firms.

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