SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 341.95+0.3%4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Boca_PETE who wrote (7387)1/26/2013 12:17:03 PM
From: MrGreenJeans  Read Replies (1) of 10065
 
I'll disagree with all of them at the moment you believe interest rates will begin to rise.

The inflation protected securities may not give you the protection you believe if the area you live in, or the lifestyle you lead, incurs price increases faster than the return on these funds. That is, you may receive an inflation protection of X% but if you live in Nyc your inflation protection may need to be X%+Y%.

If rates increase no reason to be in bonds or emerging markets. They will both sink first. When the Fed minutes were published and there was some talk about ending QE forever perhaps this year those funds sunk for the next two days.

If rates increase all equity funds will decrease and I believe there is a higher correlation than most believe btw U.S. and foreign equities, that is, if US equities go down being diversified in foreign equities will offer little diversity since they both move in tandem.

MGJ
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext