Scott F

Assessment of Sector Outlooks

The one small problem with this analysis is his use of TIPs. The assumption here is that TIPs represent a default-free, inflation-adjusted return. The only problem is that they depend on governments, particularly our own, to state accurate inflation figures. This is a bit like the fox guarding the hen-house, when so many government expenditures, long-term and short-term, are predicated on low inflation. Predictably, inflation has become politicized, and the numbers are not objective. The U.S. consistently under-reports inflation. Bizarrely, this is something normally conservative and moderate journals never address, be they the WSJ, the NYT, the Economist.