How Bill Gates is betting on inflation!

Wednesday, October 19, 2011
By Paul Martin

Microsoft tycoon is investing in little-known inflation funds

By Brett Arends
MarketWatch.com

If you’re retired, or nearly retired, you probably want three things from your investments: Safety of principal, a reasonable rate of interest, and some security against the risks of inflation down the road.
Good luck with that.

Developments in the financial markets, and the Federal Reserve’s policies, have driven down interest rates and closed off most of your options.
What can you do?

Here’s something intriguing. Microsoft founder Bill Gates has been quietly taking advantage of a little-known investment on the stock market that may satisfy all three conditions. And it’s open to anyone.

Before we take a look at that, let’s look at the conundrum facing millions of older investors.

Stocks don’t offer safety of principal (although a basket of high-quality blue chips offer a pretty reasonable amount of security over the course of, say, five or more years).

Certificates of deposit, money-market funds and short-term bonds don’t offer a reasonable rate of interest. One-year CDs are paying about 1% — compared to official inflation currently running at 3.8% — and shorter-term deposits are paying even less.

The Rest…HERE

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