Here's some TIPS -- fixed coupon, principal value tied to CPI

The Ticker

September 10, 1999|By Julius Westheimer

NOTES AND QUOTES from magazines, newsletters, etc., that piled up during a brief vacation:

"Buy TIPS, or Treasury inflation-protected securities. They pay a fixed coupon, but their principal value is adjusted to the consumer price index." (Fortune)

"Keep losses small, selling any stock where your loss exceeds 20 percent. Let your profits run." (Cabot Market Letter)

"From 1990-1998 the annual large-firm CEO compensation rose from $1.8 million to $10.6 million -- almost a 500 percent increase." ("Wall Street Follies," by John Cassidy in this week's New Yorker)

"The world economy depends totally on the stock market, whose growth depends on about 50 stocks, half of which never reported earnings." (Paul Volcker, former Fed chairman)

"Why invest in stocks? There's nowhere else to turn. As interest rates rise, bonds' values erode. Thus, stocks will attract more buyers than bonds will." (Dick Davis Digest)

"Surging stock gains spill over into luxury homes, cars, antiques, etc., but this raises the specter of past booms and busts, especially real estate and art crashes in the early 1990s." (Kiplinger Washington Letter)

"There's no worthwhile `one-decision' stock or strategy, but now I stick with a long-standing decision to own large-cap stocks, not small ones." (Kenneth Fisher in Forbes, Sept. 20)

"Don't be too impressed with your own success, and do keep learning.

"Anyone would be deeply troubled by a volunteer physician's assistant trying to perform triple bypass surgery. So don't expect to make money in stocks as a hobby without proper training and tools." (Andrew Lo, MIT professor of finance, in Worth, October)

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