Tag Archives: inflation

Bubbles…Is Gold next?

The WSJ recently published a chart that we thought was worth examining, and then noting here.  The chart draws an excellent comparison between the recent surge in gold prices to previous bubbles of the last decade, giving us a cautionary perspective for those pouring money into gold today:
Posted in Home | Also tagged , , , | Comments closed

Forecasting: Interest Rates and Market Changes

The function of economic forecasting is to make astrology look respectable. - John Kenneth Galbraith   I’ve been in the forecasting business for 50 years, and I’m no better than I ever was, and nobody else is either. - Alan Greenspan   And the cost of reacting to forecasts, stock market promoters and other financial media commentators - leading to poor investor [...]
Posted in Home | Also tagged , , | Comments closed

Treasury-Inflation Protected Securities

Treasury-Inflation Protected Securities, also known as TIPS, are securities whose principal is tied to the Consumer Price Index.  With inflation, the principal increases.  With deflation, it decreases.  When the security matures, the U.S. Treasury pays the original or adjusted principal, whichever is greater. TIPS pay interest every six months, based on a fixed rate applied to [...]
Posted in Home | Also tagged | Comments closed

Inflation Risk

What is inflation? When you see the term inflation in the media, it refers to a change in the Consumer Price Index (CPI), which tracks the cost of goods and services typically purchased by consumers.  This government figure is good for measuring economic activity for the country at large, but does little for individuals who have [...]
Posted in Home | Also tagged | Comments closed