Berkeley CSUA MOTD:Entry 37193
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2024/11/23 [General] UID:1000 Activity:popular
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2005/4/14-15 [Finance/Investment] UID:37193 Activity:moderate
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.