No. of Recommendations: 3

You wrote, If inflation is the killer problem, I would be very critical of preferreds. With a 7% coupon purchased at par and 5% inflation, you're not doing too well.

I assume that's sarcasm?

I think Rayvt was just rambling - talking about two completely separate issues and injecting a vote for one of his favorite investment vehicles. Preferreds hardly solve the inflation issue. Some can help address it by providing variable rate (indexed) coupons, but you can do the same things with bonds or fixed income funds. I think Rayvt is just hooked on the liquidity and to some extent the obfuscation of preferreds.

I like preferreds too. But I don't think buying them protects me in any way against inflation, interest rate or any other risk you'd normally find in bonds.

- Joel
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