So, anyone holding cash is a guaranteed loser! The Fed has stated a clear policy to keep the "real rate" of interest negative until a clear economic recovery is in place.This is true only for the short term part of the yield curve. I think the Fed can purchase long term bonds but, so far, they have not done it.The bottom line is that it pays to lengthen the term of your investments through a bond or CD ladder or some other scheme. The after tax return of 5 year T-notes or CDs stinks, but it is still better than a negative real rate.ayduda
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