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https://boards.fool.com/no-the-term-deflationary-was-not-a-typo-my-point-18351160.aspx
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| Subject: Re: Bond Fund For TIPS? | Date: 12/29/2002 8:08 PM | |
| Author: Daryll40 | Number: 88094 of 888931 | |
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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. |
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