3/14 Related to the below (same poster): If I open an ING Direct account
for 3% yield, and people are figuring inflation is 3.2% per year, I'm
actually losing money (post-inflation), right, until inflation drops
below the nominal yield?
\_ Yes.
\_ TIPS was created to appeal to people whose rely on interest
rates as income.
\_ Until inflation drops below the nominal yield minux tax.
\_ Foreign currency, higher interest rate AND stronger currency. I
invested in Euro 2 years ago and never looked back. US dollar is
FUCKED regardless of inflation and interest rate.
\_ I think the Euro has appreciated about all it is going to
against the dollar. They will be back nearer to each other
soon enough. |