You emphasize the dangers of bonds during the impending period of rising interest rates. What about TIPS – Treasury Inflation Protected Securities?
TIPS are excellent for investors who are looking for safety of principal and a return protected from inflation. You can learn all about TIPS at the U.S. Treasurys Web site www.publicdebt.treas.gov. There are some ins and outs you need to know about, and, therefore, you should fully inform yourself before buying them. Our February, 2003 market letter discussed TIPS in detail. If you would like a copy, send me an e-mail at protiming.com.