As I said in my Money & Markets column on Tuesday, deflation might be here, but select items continue to defy gravity.
Health care costs (or “insurance costs” if you prefer!) fit the bill.
And so do postage rates, apparently.
You might have heard the news a few days ago … the U.S. Post Office will be raise the rate of a First-Class Mail Stamp another 2 cents starting May 11.
Yes, again. This marks the third hike in two years.
That begs the question: Should I stop pounding the table on TIPs and start singing the praises of a different kind of inflation-indexed government paper? I’m talking about the Forever Stamp, of course.
Since it was introduced in April 2007 through the coming hike in May, stamp prices will have risen 7.3%.
Compare that with many other investments over that timeframe, and you just might be inclined to cash out your 401(k) and run over to your local Post Office with the proceeds!
Related posts:
- The Inflation-Deflation Debate Continues Today we saw another dip in the CPI. March CPI pulled back 0.1% as declining energy prices offset the biggest...
{ 2 comments… read them below or add one }
Nilus, Preferred stocks have also dropped in price and offer attractive yields. Do you believe they are still a viable investment?
Nilus Mattive Reply:
March 4th, 2009 at 1:58 PM
Hi, Louis. As a matter of fact, I have been planning on devoting a future issue of Dividend Superstars to this very topic. It might come as soon as next month.
Thanks,
Nilus