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"TIPS for your portfolio" (BusinessWeek Investor, May 26, 2003)


"TIPS for your portfolio" (BusinessWeek Investor, May 26) stated that "even though the TIPS principal is adjusted upward when inflation rises, there's no reduction if deflation kicks in." The article should have stated that while there is no reduction to principal over a TIPS's lifetime, there would be a short-term reduction if deflation occurs. If held until maturity, TIPS are guaranteed to return 100% of principal.


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