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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Inflation

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  • HI @BenWP,

    My bad. It went right over my head. duh.

    I too am not at all comfortable with NFTs. Geez, even with real estate, you can list it and sell if fairly quickly if you must. I get uneasy when folks try to sell me a 'concept' that you can't really see or feel. Really?

    That said, I do NOT own any bitcoin but do own a bit of COIN.

    stay safe,

    rono
  • edited December 2021
    “So quit worrying so much about that unlikely event ( really old and broke)”

    Suppose we’ll get blasted for straying OT. Appreciate the takes of everyone. @Junkster doesn’t comment often enough. As he has mentioned before, the longer we’re invested the faster the stash appreciates in nominal terms owing to compounding. . And, considering one’s ever increasing financial knowledge and skill-set, that $$ should appreciate even faster than it did in earlier years (at least on a risk-adjusted basis).

    Now the other side. I was terrible managing money up until near age 50. A good job kept me afloat. (and a bad marriage nearly done me in). The “catch-up” provisions in our workplace tax-deferred plan saved my a** in hind-sight. But I will say, having at least glimpsed both conditions, it’s a thin line between “rags” and “riches”. Die rich? Die broke? They’re not really comparable - the former being much more endurable ISTM.

    I’ve no answer to the dilemma. You could annuitize everything and really splurge in those luxurious later years. Just be sure that annuity has a generous inflation rider - because inflation is the big unknown - and probably the reason we over-save.
  • @rono stated:

    Recall the Elder Baron Rothschild's advice that to protect your wealth, you wanted 1/3 in securities, 1/3 in real estate and 1/3 in rare art. It's this last category that can be tricky. It includes gold and bitcoin, and many other assets. It doesn't include cabbage patch kids, nor Beanie babies.

    My comments below:

    Kind of like Nancy Pelosi and her husband's investments...as of a few year ago, $65MM in real estate, $50MM in stocks and $25MM in private investments...I imagine they are double digits higher now....maybe Liz Warren will ask her to pay more taxes and try to publically shame her...maybe not?

    Hmm, might this suggest ...that the best investments advice would be to follow the Pelosi's investments....I would think she would know what the fed and central banks are thinking, strategizing etc, no?

    Best,

    Baseball Fan
  • Howdy folks,

    As for the Baron suggesting 1/3 each to real estate, securities and rare art - run your own numbers. All of your SS, pension, IRAs, stocks, bonds, cash, are securities. Most of us are way top heavy in this category. Real estate is easy. Rare art? Up to the individual but has to be comparable to rare art.

    Side bet that most of you blow chunks on your computer screen.

    and so it goes,

    peace and wear the damn mask,

    rono
  • edited December 2021

    CPI

    “The Fund seeks investment results that correspond generally to the price and yield performance of its Underlying Index, the IQ CPI Inflation Tracker Index. The Underlying Index seeks to replicate the risk-adjusted return characteristics of the Consumer Price Index..” (Lipper)

    Not a recommendation. Just thought worth sharing …
  • FWIW, the investment manager, IndexIQ appears to have thrown in the towel with respect to index construction.

    This fund currently tracks the IQ Real Return Index, developed by IndexIQ LLC. This index targeted a positive real return. The index is "based on the premise that capital market returns tend to be forward looking and anticipate economic developments including inflation expectations."

    Summary Prospectus

    However, as of Feb 28, the fund will track a different index, constructed by Bloomberg.
    the Fund will begin seeking investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the Bloomberg IQ Multi-Asset Inflation Index (the “New Index”). ... Bloomberg Index Services Limited serves as the index provider for the New Index.

    The New Index seeks to provide investors with a hedge against the inflation rate by providing diversified exposure to assets that have historically exhibited positive sensitivity to the Consumer Price Index, or CPI.
    https://www.sec.gov/ix?doc=/Archives/edgar/data/1415995/000110465921150893/tm2135117-10_497.htm

    That sounds like a different, less ambitious objective (inflation hedge vs. positive real return) and a different approach (less psychic, more traditional). It also suggests the risk of high turnover early this year.
  • edited January 2
    Thank you @msf -

    I can’t blame them for abandoning the original (CPI?) inflation index as a tracking method. So many different ways of measuring inflation (wholesale, retail, ex-food and energy, etc.) I wondered right away too if the fund as first conceived could compete with inflation adjusted bonds with much lower expenses … albeit, I don’t think TIPS would behave in the same manner under all circumstances. Disclaimer: I recently opened a position in this firm’s QED - which is supposed to track an index of event driven hedge funds (until they decide to change it).

    With inflation on the “front burner” / many investors’ minds, I thought a fund that attempts to track inflation (in any form) worth tossing out for consideration.

    PS - Sounds from your evolving excerpts like “geniuses at work”.:)

  • edited January 7
    hindsight will show the right decision was to ride it out, sez here ...

    https://www.nytimes.com/2022/01/06/opinion/inflation-unemployment-economy-growth.html
  • rono said:

    Howdy folks,

    I'm probably the oldest 'gold bug' around but no longer give it the same inflationary hedge status today as I have in the past. Bitcoin hasn't dethroned it but has reduced demand sufficiently on the margin to influence my decisions. Don't get me wrong, I'm playing the junior silver miners as I type.

    Recall the Elder Baron Rothschild's advice that to protect your wealth, you wanted 1/3 in securities, 1/3 in real estate and 1/3 in rare art. It's this last category that can be tricky. It includes gold and bitcoin, and many other assets. It doesn't include cabbage patch kids, nor Beanie babies.

    Good luck and wear the damn mask

    Rono

    Throw in sports cards to the "rare art" mix Rono. Since 2020, the hobby has gone through the roof. There's youtube videos of people charting card sales and gains like stock charts.
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