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Barron’s May 17 Issue - A few take-aways …

edited May 17 in Other Investing
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(No luck cutting and pasting this week. So here’s a few take-aways from this week’s Barrons.)


- There’s a lot of inflation discussion in this week’s issue. Randall Forsyth covers the story in his weekly column, as do some other writers. “Year-over-year” the latest month’s inflation figure came in at +4.2%. One home builder is quoted as saying that he can no longer obtain a firm price on lumber he orders. Prices are rising so fast that the lumber company he deals with won’t commit to a firm price until the day of delivery.

- The most recent U of M consumer confidence survey fell slightly. Barron’s attributes that to worries about inflation.

- There’s also a lengthy article about some new ETFs that allow investors to hedge against bond interest rate risk via various approaches. Several are mentioned. (As discussed in another thread here, Price’s Dynamic Income fund, RPIEX attempts to do the same by selling bonds short.)

- One knowledgeable fixed income trader describes TIPS as “very expensive” and advises against owning them.

- Somewhat curiously, Forsyth devotes considerable space to PRPFX which he views as a possible haven in light of mounting inflationary pressures and distorted asset valuations. Forsyth briefly references manager Michael Cuggino’s views on the current financial backdrop.

This seems like an exceptionally substantive issue, which I’ve only half read at best. The value to me of Barron’s is that it causes me to think a lot about different approaches to investing and different types of investments. Barron’s is not a “how to invest” or “what to buy” guide. Just a great thought provoker.

Comments

  • @hank, thanks for the highlights. Lots of topics presented in Barron's. I am making my way thru it. Inflation is the biggest topic. LEwis Branham also has an article on ETF.
  • Inflation is the theme of this weeks Barrons. They state the biggest unknown the FED faces is if this is a short term spike of inflation or if it will be a longer trend that stays for a while. Million dollar question for the FED to get right. Right now the FED is banking on a short term spike.
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