Archive for May, 2012

Lessons from the Facebook IPO and its aftermath

The short saga of Facebook stock performance during its brief life as a public company has provided a valuable opportunity for self-directed investors to learn some extremely valuable lessons about investing.  It is unfortunate that most of them will let this opportunity slip by, and they will go on to make similar errors again and again. Read the rest of this entry »

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How effective are TIPS as an inflation hedge?

In the previous blog posting, I examined how effective gold was as an inflation hedge.  The answer was not very.  In this essay, I tackle the question of how effective TIPS perform as an inflation hedge.  If any asset should protect you from inflation, surely an asset called Treasury Inflation-Protected Securities should do this, right?  Let’s see.

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