| lukeh |
12-31-2009 12:48 PM |
Quote:
Originally Posted by Vintage Racer
(Post 5099112)
My recommendation is based on my experience of being a money manager for many years. What is wrong with investing 10% in TIPS while investing 65% in stocks when you consider that many people tend to panic (like last year) when stocks go down 60%?
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Who are you making this recommendation to? My kid saving for college that had EE/I bonds...me...my 70 year old parents...everyone that posted on this topic? I can't see how without knowing each of our situations you can make any recommendations.
Why would I want to put money in I bonds or TIPS when inflation is low? I have a portion of my portfolio in fixed income. Most this year was in international and high yield. Why shouldn't I wait until inflation is at a points where I bonds and TIPS are paying a good rate of return before I invest in them? What is the advantage of getting in when inflation is low? I can understand investing when the stock market is low because you are buying shares cheaper. I can't see how this same principal applies to buying I bonds or TIPS when inflation is low. Maybe I'm not understanding it but it makes sense to me to own these investments when inflation is high and avoid them when inflation low. I can't see where I miss out on anything by waiting for higher inflation before I buy them.
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