No. of Recommendations: 3
Inflation is the problem with *all* fixed income investments. However, the inflation rate isn't different for different vehicles. It's not like inflation is 5% for preferreds and 2% for bonds and 1% for treasuries -- it's the same for everything.

If you subtract 5% inflation from 7% for preferreds, you'd also have to subtract 5% inflation from 3% Treasuries. Net 2% gain isn't a barn-burner yield, but it sure beats a net 2% loss.
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