Barrons decided to play Toto (the dog, not the band) and pull the curtain aside. Their Income article is "TIPS Are Not a Good Inflation Hedge." Duh... There are those that buy Treasury Inflation-Proteced Securities (TIPS), and I don't mean to be giving anyone grief about it. Your decision, whatever your comfortable with. Maybe its probably just a portion of your portfolio, or whatever. Brightline West plans to start on the 170-mile LA to Vegas high-speed (200+ mph) rail line this year. And it sounds like they will be issuing bonds later on (I won't be buying any). As I understand it, the western terminus will be Victorville....which is still a good distance from LA. Even on Friday afternoons, I think the worst of the traffic would be from L.A. to Victorville...once you hit Victorville, I've always found that to be smooth sailing (but I've only driven that a few times).
Back in the day, serious money could be made with TIPS. But nowadays, they're a scam better avoided. As for those light rail bonds, it depends on what protections are offered to buyers. Over the years, I've done well with out-of-state munis, especially those tied to projects with real assets, e.g., water, sewer, and avoid nonsense like "sports arenas".
Brightline West is a private company, their upcoming bond offering, if it happens, might not be muni bonds. They have a rail line in Florida. A company named Siemens in Sacramento makes their rail cars. And maybe they'll be able to get some infrastructure money. On the subject of trains (two of my last few hold-over bonds from 2008/2009 are BNSF and UP bonds), Canadian Pacific was going through the process of buying out Kansas City Southern (KSU), but Canadian National just jumped in with a higher offer. Be interesting to watch. KSU shares got a nice little bump up from the new offer.
Black, Not all 'munis' are classic 'munis'. Some are 'special purpose minis- --I don't remember the exact term-- that amount to a municipality backing a private-capital project. Generally, they are high-risk scams better avoided. But I made good money on an Oregon bond that was tied to the Seaside Aquarium. The umbrella title was 'OR State Housing'. But the recipient of funds and payer of prin & coupons was the museum's revenues. My bet is the light rail bond will be issued as a muni. A
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