BERKELEY HEIGHTS, N.J. ( TheStreet) -- Recent market volatility has investors heading out of equities and into so-called safe investments such as 10-year U.S. Treasuries. Operation Twist by the Federal Reserve has dropped 10-year treasury yields below 2%. As I write this, the yield on 10-year Treasuries is a meager 1.88%.For many investors that sounds great, given current equity market turbulence. Risk-averse investors often fail to account for inflation, though.
|Your 10-year Treasuries aren't as safe as you think -- while your money is locked up, inflation is stealing it away.|
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