closedendtrader's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/105225/comments http://seekingalpha.com/article/71109-where-s-the-protection-in-tips-better-to-go-with-silver-and-gold?source=feed#comment-136129 136129
"The standard five-year Treasury Note now yields 2.45%. Meanwhile, today's 5-year TIPS yield is only a slightly positive .07%, implying that investors' anticipated rate of inflation over the next five years is just 2.38%. That means investors expect a dramatic decline in inflation rates from the current "official" rate 4.1%-- which itself is likely understated. Such expectations are untenable given the actions taken by the government and Fed over the past 7 months."

The reason that investors are willing to buy TIPs with an implied inflation rate of only 2.38% is that if inflation stays at the current 4.1%, they'd earn a 4.17% return, far better than the 2.45% return on the regular Treasury. TIPs are overvalued because regular Treasuries are even more overvalued, a function of the credit crunch fears.]]> Thu, 03 Apr 2008 14:57:49 -0400
"The standard five-year Treasury Note now yields 2.45%. Meanwhile, today's 5-year TIPS yield is only a slightly positive .07%, implying that investors' anticipated rate of inflation over the next five years is just 2.38%. That means investors expect a dramatic decline in inflation rates from the current "official" rate 4.1%-- which itself is likely understated. Such expectations are untenable given the actions taken by the government and Fed over the past 7 months."

The reason that investors are willing to buy TIPs with an implied inflation rate of only 2.38% is that if inflation stays at the current 4.1%, they'd earn a 4.17% return, far better than the 2.45% return on the regular Treasury. TIPs are overvalued because regular Treasuries are even more overvalued, a function of the credit crunch fears.]]> http://seekingalpha.com/article/64158-switzerland-etf-getting-ready-to-rebound?source=feed#comment-115859 115859 Tue, 12 Feb 2008 09:52:03 -0500 http://seekingalpha.com/article/63163-why-i-m-shorting-spain?source=feed#comment-114691 114691 Tue, 05 Feb 2008 12:54:48 -0500