Delojozafado

Seven Reasons Inflation Won't Vanish

We certainly do have inflation. One of the best investments in my IRA through this whole one year long market decline has been the closed end fund WIA. TIPs at a discount. It still yields about 5.5%. CEFs are beginnning slowly to come over from the dark side. That is morph into ETFs when this happens the discount to NAV all but disappears. I am also invested in the PMX in my non sheltered accounts. Nearly 6% yield for an investment free of Federal taxes. This is something that will work best if you have a low commission broker and slowly over the next few years take partial positions in. States like Calf and NJ that could never balance their budgets in good economic times are now paying a 1.25% premium to US treasury notes of similar durations. PMX is a long term bond portfolio. I balance it off with my larger position in FLTMX a very sound Med term tax exempt bond fund. For the bold there is the BAC-PrE which has a default rate (payments can not be reduced below the minimum rate) and that has an adjustable dividend rate that is tied to LIBOR.