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Defending Yourself Against Deflation

Wednesday, August 4, 2010 - 12:44 PM
The author of this WSJ article thinks we'll avoid deflation, but some major investors are taking the deflation risk seriously. Here are a few tips the author provided:
To protect against deflation, investors should maintain the focus on high quality, but lengthen maturities. This is easily implemented as short-term bonds and CDs mature. There also is nothing wrong with holding cash or cash equivalents, even with money-fund rates close to zero. Cash gains in value as prices fall.



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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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