1) Why don't you use your pull and get the exchanges to list options on the RINF ETF so you can pull a "Kuppy" and sell weekly puts to subsidize your TIPS carry trade?
2)Please address my fear that the gov't can say what inflation is or adjust it for improvements in quality, etc. in how the mechanics of the TIP pricing works.
1) Why don't you use your pull and get the exchanges to list options on the RINF ETF so you can pull a "Kuppy" and sell weekly puts to subsidize your TIPS carry trade?
2)Please address my fear that the gov't can say what inflation is or adjust it for improvements in quality, etc. in how the mechanics of the TIP pricing works.
3)Isn't there some sort of tax consequences in the TIPs if you don't buy the new issue?
1) You think I am way more powerful than I actually am. :)
2) So, I worry about that as well. I can't promise you that they don't change the rules, but it's probably not as arbitrary as you think. Don't forget that there are billions of dollars of financial instruments based on these indexes. I don't think it would be worth it for the gov't to monkey with it until there is real pain. Therefore, if they do change it, we will be well on side and we will deal with it then. That's my $0.02 about that.
3) I am not an American and my trading is all income, so I don't look at taxes the same as most investors. I am not sure about the tax issues. If anyone can comment, then please chime in.
1) Why don't you use your pull and get the exchanges to list options on the RINF ETF so you can pull a "Kuppy" and sell weekly puts to subsidize your TIPS carry trade?
2)Please address my fear that the gov't can say what inflation is or adjust it for improvements in quality, etc. in how the mechanics of the TIP pricing works.
3)Isn't there some sort of tax consequences in the TIPs if you don't buy the new issue?
Hi Alan,
1) You think I am way more powerful than I actually am. :)
2) So, I worry about that as well. I can't promise you that they don't change the rules, but it's probably not as arbitrary as you think. Don't forget that there are billions of dollars of financial instruments based on these indexes. I don't think it would be worth it for the gov't to monkey with it until there is real pain. Therefore, if they do change it, we will be well on side and we will deal with it then. That's my $0.02 about that.
3) I am not an American and my trading is all income, so I don't look at taxes the same as most investors. I am not sure about the tax issues. If anyone can comment, then please chime in.
Thanks for the great questions.
Have a good night,
Kev