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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (20061)	4/28/2009 12:08:07 PM
From: Tommaso	Read Replies (2) \| Respond to of 71456

I think I may have found the perfect inflation hedge. It is PCRDX, the PIMCO fund, which has been knocked flat by the dollar-strength commodity bust of the last nine months. I found an excellent contrarian post on Yahoo--that is, what I am about to quote illustrates the mentality that produces a rare buying opportunity. I would say that a Roth IRA invested in PCRDX might well make the owner very wealthy in the next few years. But here's the complaint: "I'm giving up on this sucker, after a 60% drop straight down. The complication is that I bought it for a Roth IRA account. You may as well look now, because if you have any plans of cashing out of an "exceptional" loser such as this, there's no tax benefits, no write-offs, no losses allowed unless you cash out of your whole Roth IRA. And even then the loss can't be taken on Schedule D but has to be listed as a "miscellaneous loss," which basically leaves you with little incentive to cash out except to take a flier on something better with whatever remains. I'm surprised that after all of the fuss financial advisors were making about the wonders of a Roth IRA, so little has been said about the down side--what to do if your Roth is suddenly sliced in half. Suddenly the benefits of a Roth (and perhaps no less an ordinary IRA) seem highly exaggerated and possibly non-existent. In a free-fall market, you're better off staying away from this nasty entanglement. I've told my son to forget what I told him a year ago about the advantages of a Roth IRA."