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CORRECTION: Protecting Against Tariff Induced Inflation

lynnbolin2021
in Fund Discussions
In my rush to get this month's article out before taking a trip, I wrote, "Equity valuations are high, which are tailwinds for domestic stocks." Obviously, high valuations are a headwind for stocks.

https://www.mutualfundobserver.com/2025/06/protecting-against-tariff-induced-inflation/

In regard to Professor Snowball's article, Aegis Value Fund (AVALX), I have been studying AVALX for the past several weeks. I like it for its small cap "deep" value approach and long-term performance. I purchased it this morning after a cup of coffee and its recent dip.

Comments

  • yogibearbullyogibearbull
    TIPS have features that are realized only when held to maturity. They pay inflation-adjusted principal at maturity. So, when held to maturity, they deliver CPI plus tiny base interest. TIPS ladders can be effective.

    Funds may be wrong vehicles for TIPS:

    1. Funds don't mature & the benefit from the main feature of TIPS is lost in TIPS funds (OEFs or ETFs).

    2. TIPS funds also have strong duration effect. While this applies to TIPS ladders too, there is the (preferred) option to hold components to maturity.

    3. TIPS funds have to distribute inflation adjustments annually - whether earned or not. So, if there aren't enough inflows, some holdings must be sold to pay required distributions.

  • Sven
    Thanks @lynnbolin2021 and @yogibb.
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