Cullen Roche is currently my favorite financial blogger for many reasons not worth elaborating. He published a list of investing myths that really covers a wide swath of the investing world and I thought worth repeating. Grab a cup of coffee and see if you agree. Good Stuff!
Biggest Myths in Investing
Enjoyed Myth #5.
ReplyDeleteI wish he would have mentioned TIPS though. Hard to lose money, even in real terms, by buying a 1% (above inflation) long-term TIPS and holding to maturity.
As I've said many times before, I have no problem holding long-term TIPS *and* rooting for higher long-term interest rates.
Further, just because the Fed is pushing up short-term rates, that does not guarantee that long-term rates will continue to rise.
That's especially true in this brave new and improved super-resilient economy where all lessons have been learned and nothing can possibly ever break again.*
* Some sarcasm added for comedic effect. ;)
Stagflationary Mark,
DeleteYes, TIPS would be been a good mention, but at least he highlights that bonds held to maturity aren't affected by rising rates. I think he is light in some areas but overall pretty useful.