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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Ken Brown who wrote (11517)1/29/2000 1:08:00 PM
From: marc ultra  Read Replies (1) | Respond to of 15132
 
Ken re<<<I Bonds"

I was a bit surprised that Bob didn't know what I Bonds were when a caller asked him about them last week.
Bob doesn't get stumped very often! Well, FWIW, here are a few tidbits about I Bonds:>>>

Very interesting. It's too bad you didn't call instead of someone who was totally clueless about what he owned.

Marc



To: Ken Brown who wrote (11517)1/29/2000 1:39:00 PM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 15132
 
Ken: Thanks for the post in I bonds. (eom)



To: Ken Brown who wrote (11517)5/5/2000 10:51:00 PM
From: Ken Brown  Read Replies (2) | Respond to of 15132
 
(OT) I-Bond (& etc.) update:

FWIW, the fixed rate paid on I-Bonds purchased between May thru Oct has been pegged at 3.60%, up from the previous rate of 3.4%. The CPI-U adjustment for the next 6 months is 3.82%, combining to a 7.49% earnings rate (don't ask me why it isn't 7.42%, because I don't know, though I'm sure I should).

The spread between I-Bonds and TIIS (aka TIPS) narrowed significantly since my last message in January. The latter now pay only about .10% to .25% more, compared with about .75% in January. (See my previous message that this is in response to, if you're interested in more info.)

Lastly, I've read that Vanguard is opening a new fund in the next month or two, "Vanguard Inflation-Protected Securities Fund", providing another way to invest in TIIS. Too early to say, of course, if their management expertise will provide any benefits over direct ownership.

My apologies if this really isn't an appropriate post for this thread. More on-topic: If anyone listens to Bob via the internet on KXL, be advised that starting tomorrow, KXL will be broadcasting Bob live. (They had been broadcasting him on a 2-hour time delay.) I'm looking forward to learning the identity of the "special guest" - could it be Jr? Greenspan? (LOL!) Sheldon Jacobs? Who knows ....

Ken



To: Ken Brown who wrote (11517)7/19/2000 5:41:32 PM
From: Archie Meeties  Respond to of 15132
 
You assume to much to say that Ibonds are "Inflation-adjusted". They are cpi adjusted. Not the same.

The cpi lags inflation considerably. Buying them at a time of rising inflation , when the fed is aggressively trying to pre-emptively stop inflation would be second best compared to the investments which have historically shined during inflation. Better than cash, yes.

Inflation leads the t-bills which leads the cpi - a cpi struggling up the BLS hill of statistics.