Bonds/TIPS: VIPSX

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Expert: Doug Ingram - 11/23/2004


Question
Hi Mr. Ingram, How do you feel about the prospects for TIPS in 2005? Inflation has recently ticked up, is VIPSX a good place to be in 05'? Thank you!

Answer
That's a good fund.  I always check morningstar.com for ratings on mutual funds.

I'm a little unconvinced on inflation.  The real estate bubble still has me a bit concerned.  If we do step up inflation wise, TIPS are the play.  If we don't, I just prefer bonds.

Crude Oil has doubled.  Gasoline is up 60%.  Inflation is 2%? (3.5 or therabouts with food and energy).  Something just doesn't seem right.

Play your heart, but I would season my holdings with other bonds as well.

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Doug Ingram

Expertise

Fixed income portfolio allocation and strategies for institutional investors. Having designed multi-scenario risk quantification and cash flow projection models for nearly 25 years, Strategic Technical Initiatives can answer your regulatory, SFAS 115 allocation, securities selection, and other questions dealing with yield curve placement and portfolio mix strategies. I write the Bond Market Review on behalf of Commerce Street Capital Management.

Experience

Trading and designing portfolio strategies since 1980.

Education/Credentials
Physics and Differential Mathematics

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