Western Asset/Claymore U.S. Treasury Inflation Protected Sec Fund 2 (WIW)

All Comments on WIW

  • commenter
    Joe Eifrid
    Jul 12 05:45 PM
    Looking for an Inflation Linked Parking Spot [view article]
    Bill Gates parking some last week in WIA

    www.insidercow.com/his...     Reply
  • commenter
    oldman
    Jul 08 11:24 AM
    Looking for an Inflation Linked Parking Spot [view article]
    HGT, down $7 in just 4 trading sessions. You cannot compare to bonds. Reply
  • commenter
    E.D.Hart
    Jul 07 10:16 PM
    Looking for an Inflation Linked Parking Spot [view article]
    Growing your money after subtracting inflation means a net shrinking of your money, hence guaranteed risk. There is no minimized risk--its built in to lose you money. Reply
  • commenter
    User 86999
    Jul 07 07:23 PM
    Looking for an Inflation Linked Parking Spot [view article]
    vipsx was @ 13.15 on 3/10, and then it dropped to a level @ 12.56 on 6/13. That's a drop of 4.5%. The quarterly dividend comes out to a little more than 5% (without deceptive financial compounding jugglery), . Now subtract the 0.2 expense ratio, and we're left with far less than a decent bank savings account will pay. The point being that bonds are not as safe for parking as they are thought to be.

    All the CPI underestimates, and inflation being more than the yield and stuff are irrelevant in the context of this article which seeks to simply park the money, meaning preserve it safely enough with possibly let it grow a little with minimized risk.     Reply
  • commenter
    Aalan
    Jul 07 05:29 PM
    Looking for an Inflation Linked Parking Spot [view article]
    You forgot WIP, which invests only in non-US inflation-protected securities. Other governments are more honest about inflation rates than ours, and the interest is higher to begin with, so it's a much better bet, IMO. Reply
  • commenter
    E.D.Hart
    Jul 07 04:19 PM
    Looking for an Inflation Linked Parking Spot [view article]
    The investing speculator is correct: shorting treasuries--if you know what you are doing may be a better bet as there is a massive bubble in treasuries now. They are currently guaranteeing that you will lose money, after inflation, as they carry a negative yield.

    You are in effect, paying the government for the right to loan it money.

    DrBagel is also correct, the TIPS are not a good vehicle for long term inflation protection because they are linked to flawed US government inflation calculations. If you trust the government to calculate inflation for you, then go for it.

    But real inflation is north of 8%. Thus tips will leave you in the hole.

    One option that still looks good now is the energy trusts that are linked to oil and natural gas. Three of my favorites are PWE, COSWF, and HGT. The payouts are currently between 10-13%.

    True, the new Canadian tax regime will take a bigger bite, but this is more than made up for by the increasing dividends in appreciating currency of the Canadian dollar (except for HGT, which is in US).

    Disclosure: I own COSWF and PWE.     Reply
  • commenter
    Foust
    Jul 07 01:48 PM
    Looking for an Inflation Linked Parking Spot [view article]
    What about PARRX? Reply
  • commenter
    drbagel
    Jul 07 11:59 AM
    Looking for an Inflation Linked Parking Spot [view article]
    I would argue that bonds are the wrong way to hedge inflation. TIPS are indexed to CPI, which underestimates inflation for several reasons, not the least of which is the exclusion of food and energy. In general I think they are misunderstood. All they really promise is stable value. When inflation is up they underestimate it and when inflation is down they pay almost nothing. TIPS are really most useful for people heavily invested in bonds. For folks with generous stock allocations, I think an allocation to an inflation liked sector goes much further than TIPS possibly can. Inflation creates false shortages. Commodity prices go up if there is excess demand relative to supply, but also if there is too much money. The result is a false boom for commodity producers which is rapidly reflected in stock prices. XME seems to make the most sense (metals and coal). Some people may prefer commodity ETF's or ETN's but these carry tax consequences or corporate debt risk. Reply
  • commenter
    DougM
    Jul 07 11:49 AM
    Looking for an Inflation Linked Parking Spot [view article]
    How much of those yield figures on TIP and IPE (and the mutual funds) are due to the non-repeatable rise in bond prices associated with falling interest rates? These investments look far from safe to me; won't they give back those gains as interest rates rise? Reply
  • commenter
    theinvesting
    speculator
    Jul 07 10:54 AM
    My Website
    Looking for an Inflation Linked Parking Spot [view article]
    I think a better investment is shorting the 30-year bond. Debt instruments have not priced in coming inflation. Reply
  • commenter
    bloozman12
    Apr 30 06:13 PM
    Treasury Inflation Protected Securities Funds [view article]
    It turns out that perhaps this older article was somewhat prescient Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:16 AM
    My Website
    General Discussion on WIW
    Is this a buy or a sell? Reply
  • commenter
    J. Howle
    Mar 23 02:08 PM
    My Website
    Negative Real Yield 5-Year TIPS: Betting On Higher Inflation, Price Appreciation [view article]
    George: Don't you find it interesting that these still trade at huge discounts given the quality of their assets? When traders start moving out of TIPs and they return to a more reasonable real rate of return we are going to see the NAV drop which could put even more pressure on the market price. I hate to sell my positions at such deep discounts but I surely do not want to be holding when the market turns. An inflation driven bear steepening in the Treasury market is coming at some point. Reply
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