Monday, November 23, 2009

Hussman's Thoughts on TIPS

Alert for Tanks, John P. Hussman, Ph.D.

The Fund made a very distinct move away from TIPS on the strength of recent weeks, as real yields on many issues moved to negative levels.

As usual, we tend to be opportunistic in establishing investment positions, so to the extent that we observe decided weakness in foreign currencies, precious metals or TIPS (all of which would most probably be driven by a shift toward risk-aversion in response to fresh credit concerns), I would expect that we would re-establish exposure in these areas.

I draw some comfort that I am in the same boat that he is in. If history is any indicator, it might be an actual lifeboat.


mab said...


Hussman's thoughts on TIPS? How about mab's thoughts on Buffett:

The other day I watched part of the Buffett and Gates chit chat at Columbia University. I couldn't watch the entire program, I'm just too disgusted by WEB these days. I think he is becoming just like Trump - full of himself and
over-exposed. Saying nothing is better than spewing tripe.

Anyway, Buffett stated that cash is the worst investment. That's idiotic. Buffett should know better.

The worst investments are OVER-VALUED assets. Over-valued assets inevitably lose more than cash. Usually a LOT more. Just ask tens of millions of Japanese investors what is the worst investment - Yen vs. over-valued Nikkei stocks or
Tokyo real estate. Put the same question to dot.CON stock buyers or housing bubble investors.

Gold looks worse than cash to me at these prices too.

Stagflationary Mark said...


"Anyway, Buffett stated that cash is the worst investment. That's idiotic. Buffett should know better."

"However, even after completing the combined cash/stock purchase, Berkshire still holds roughly $20 billion in cash."

That's $20 billion allocated to the worst investment apparently.