SOURCE: Creekside Partners

August 19, 2011 10:00 ET

Creekside Partners Analyst Says Investors Should Opt for Short-Term Bond Funds to Beat Inflation

LAFAYETTE, CA--(Marketwire - Aug 19, 2011) - Rick Ashburn, a financial analyst with Creekside Partners (www.creeksidepartners.com), has a game plan for beating inflation.

Invest your capital in short-term bond funds.

While this strategy may be only part of the overall game plan, it's a big part.

"Money market funds use t-bills, repurchase agreements, and commercial paper, all of which offer little to no yield," said Ashburn, who recently shared his analysis on the market in articles in Reuters (http://www.reuters.com/article/2011/08/02/usa-debt-inflation-idUSN1E7711UC20110802) and BusinessWeek (http://www.businessweek.com/magazine/the-stress-of-carrying-cash-08112011_page_1.html). "The problem is that the funds are being squeezed and can barely cover operating expenses."

He went on to elaborate on this point, noting that "if inflation is running over 2 percent, and your cash is earning zero then you are falling behind. A better bet is a short-term bond fund, such as FPA New Income Fund."

While there is a risk -- "the net asset value could fall a half percent or so on the very day you need to sell the fund -- holding it "for as little as 3 months means that overall you will have a nice return."

About Creekside Partners

Creekside Partners, based in Lafayette, Calif., works with families to protect and grow their life savings. The firm values its independence in that it is not affiliated with any bank, brokerage firm or insurance company. Creekside does not sell any commissioned investment products, and is not bound by any proprietary investment offerings.

About Rick Ashburn

Rick began his investment career at First Interstate Bank in Los Angeles in 1985, where he specialized in municipal bonds. Shortly thereafter, he joined a private investment firm in San Diego, where he served as Chief Investment Officer, followed by a stint as a Managing Director at MBIA, Inc., an S&P 500 company specializing in financial guarantees and investment management. Along the way, the California State Treasurer appointed Rick in 1998 as a technical advisor to the California Debt and Investment Advisory Commission. He also served as an expert consultant to the Securities and Exchange Commission on a landmark securities enforcement case and has given expert testimony to a California State Senate subcommittee.

Contact Information

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