Sentences with phrase «time of deflation»

Since the principal amount of TIPS falls during times of deflation, the amount of interest reported is low when making the threshold comparison.

So he chose stocks for periods of prosperity, cash to keep you afloat in a recession, gold as a hedge against inflation, and long - term bonds as a safety net in times of deflation.

I did not make direct comparisons with TIPS beyond noting that there was a substantial distortion during times of deflation.

Even in times of deflation, the overall rate can not drop below zero and reduce your overall earnings.

In times of deflation, the purchasing power of currency and wages are higher than they otherwise would have been.

The average joe wouldn't... we would bury our cash in a mayonaise jar before we would take a guaranteed loss... (although the argument could be made that a positive return that does nt outpace inflation IS a negative return)... big corporations with billions on hand do nt have that luxury however... some investments may also guarantee investors that a certain percentage be allocated to bonds... and in times of deflation a negative return could still provide a net positive return...

The bonds have greater safety and appreciation in the asset class, which has proven to do well during times of deflation and debt leveraging.

TIPS principal is allowed to fall during times of deflation.

In my calculators, I treat I - Bonds similar to TIPS during times of deflation.