The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE

URL:  https://boards.fool.com/no-the-term-deflationary-was-not-a-typo-my-point-18351160.aspx

Subject:  Re: Bond Fund For TIPS? Date:  12/29/2002  8:08 PM
Author:  Daryll40 Number:  88094 of 888931

No, the term DEFLATIONARY was not a typo. My point was that TIPS are required to pay at least face value at maturity, as I understand it, so if you hold till maturity there is no risk of getting less principal back due to DEFLATION.

I tend to agree with you that inflation is probably NOT right around the corner, and rates could stay this low for a long time. But it just seems that at least a portion of long term fixed income fund would be best positioned in this environment in TIPS.
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us