Re: Asset based or dividend based
Good point, Jarhead. One thing I'm having trouble getting a feel for is how long term TIPS prices and yields will change as market conditions change. Would one be buying TIPS at the top now? If five years from now we had conditions similar to 1980, what would TIPS yields do? And what accounts for the drop in TIPS yields over the past 3 or 4 years? Why were they yielding 4.3% in 2000, and only 2.3% now? Is it because their yields experience the same fate as regular bonds? If it is, why would that be so when they are essentially immune from the impact of inflation?Perhaps I am jaded, because of my experience in the good old days, but buying long term bonds now is buying at the top of the mkt. , and the extra yield that you can get would look puny indeed if we even get half of the inflation that we got then.