tag:blogger.com,1999:blog-25714039.post7573817669314872376..comments2023-10-26T00:17:28.411+08:00Comments on A Private Portfolio: A nice problem to havetraineeinvestorhttp://www.blogger.com/profile/05179861120801348035noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-25714039.post-1081434023141321282009-01-29T10:34:00.000+08:002009-01-29T10:34:00.000+08:00HiThanks for dropping by.The problem I have with d...Hi<BR/><BR/>Thanks for dropping by.<BR/><BR/>The problem I have with direct holdings of US securities is that I get dragged into the US tax regime. Not only do I have to file a bunch of forms but I also lose 30% of the interest through withholding taxes. I'm not sure if the withholding taxes apply to the inflation adjustment component of the TIPS return?<BR/><BR/>The other options I am looking at are (i) NZ$ bonds - there are no withholding taxes and the nominal yields are pretty decent although I am taking an FX risk; and (ii) HK property which has come back around 25% (more or less) although I am struggling to find a motivated vendor with a property that I like.<BR/> <BR/>I do expect that the inflation caused by all the stimulus programmes being implemented by the US government (and many others) will eventually outweigh the deflationary effects of the deleverageing and increased savings rates (lower spending) - the issue is how long that will take to eventuate. Japan is still waiting....traineeinvestorhttps://www.blogger.com/profile/05179861120801348035noreply@blogger.comtag:blogger.com,1999:blog-25714039.post-15458781488009216142009-01-27T22:29:00.000+08:002009-01-27T22:29:00.000+08:00That is a nice problem to have. What about US TIP...That is a nice problem to have. What about US TIPS? I would think that all the liquidity boosting will eventually catch up to the US gov't.Anonymousnoreply@blogger.com