Salient to Investors:
Bill Gross at Pimco recommended TIPS and said to avoid longer-term maturity Treasuries because central bank policies will spur growth that will lead to higher costs in the economy.
Yoshiyuki Suzuki at Fukoku Mutual Life said that while in the short term, bonds are a safe haven, longer-term yields are not enough because inflation is an invisible cost – wait for 10-year rates to rise above 2 percent before buying.
Bank of America Merrill Lynch said show TIPS have returned 8.3 percent in 2012, versus 2.7 percent for conventional Treasuries, 10 percent for U.S. corporates, 2.1 percent for Japanese bonds.
Jeffrey Rosenberg at BlackRock warns against yields that fail to keep up with prices in the economy – you’re already losing money even without having to have a forecast about rising interest rates. Not-so-risky corporates offer higher yields, and above the level of inflation.