GDP growth was horrible - Marc Faber

[Andy62]

http://www.cnbc.com/id/33549682

[gruntbrain]

I like his idea of emerging market plays(eg VWO & EEM) & gold. I wonder what he thinks of this govt. bond play: TIP

[Andy62]

I don't know what Marc Faber thinks of TIPS,but there was a inflation investing expert on CNBC last week who was less than enthusiastic about TIPS for the following reasons.

1, TIPS are a recent creation [I believe 1997] and have never been tested in an inflationary environment.
2. Because of the way that their yields are calculated they will not adequatedly reflect inflation.

[Free]

I think TIP will be good, right up until the point where the gov starts raising rates. Then, I think it would be best to be out. I have a concern, that the reported CPI will not match inflation (it already doesn't) and that the rising rate environment will strongly affect principal.

[gruntbrain]

I admit TIP aint optimal cuz the govt can fudge on the inflation rider payout. I've had TIP for at least 4 years & it's done fine. The future ????????

Recently, Jim Cramer panned TIPS but still touts GLD

I wonder if I'll live long enough to see rates rise again