On pg. 61 of the PP book, Craig and MT state that gold works best during periods of high inflation (5% or more.) But several consecutive years of low inflation, when gold is not rising in price, could damage a portfolio's returns.
So what can minimize or prevent portfolio losses during periods of low inflation (1-4%)?
Could low inflation be the time when TIPs make sense for a Variable Portfolio?
Comments welcome.
TIPs in the VP: Good for Low Inflation?
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goodasgold
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Re: TIPs in the VP: Good for Low Inflation?
No one ever responded to this...but directly related to what I just asked regarding TIPS.goodasgold wrote: ↑Thu Mar 13, 2014 9:50 am On pg. 61 of the PP book, Craig and MT state that gold works best during periods of high inflation (5% or more.) But several consecutive years of low inflation, when gold is not rising in price, could damage a portfolio's returns.
So what can minimize or prevent portfolio losses during periods of low inflation (1-4%)?
Could low inflation be the time when TIPs make sense for a Variable Portfolio?
Comments welcome.
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."