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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (15294)	2/20/2002 10:51:08 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 74559

A TIPS Tidbit mwhodges.home.att.net <Snip> GDP Deflator Dynamics For the 12-month period ending last month (i.e. 12/01), consumer prices rose 3.4%, while the core CPI, which excludes energy and food items, rose 2.5%. Because of these lower reported inflation rates, the government has benefited by paying lower cost-of-living adjustments on social security and government pensions. Our government has also been the beneficiary of lower interest costs, especially on it's inflation-adjusted bonds known as TIPS. The soon to be announced higher inflation news is unlikely to be welcomed by the Fed or the financial markets. Higher inflation will mean higher interest rates and trouble for the stock market. <End Snip>