Day: March 27, 2024

How to Invest in TIPS: Treasury Inflation-Protected Securities | Investing

Greta
How to Invest in TIPS: Treasury Inflation-Protected Securities | Investing

Key Takeaways:

  • Treasury inflation-protected securities (TIPS) offer inflation protection, appealing to investors when rising inflation is a concern.
  • Unlike traditional bonds, TIPS adjust principal and interest payments based on consumer price index changes.
  • TIPS may be advantageous for inflation protection, but they historically underperform stocks in the long run.
  • TIPS are generally seen as a wealth protection tool rather than a wealth-building instrument.

A fixed-income investment designed to outpace inflation sounds appealing.

That’s the idea behind Treasury inflation-protected securities (TIPS), which are Treasury securities with principal and interest payments that are adjusted for inflation.

Many investors are drawn to these bonds in an era of rising inflation. Here’s a look at what TIPS are, and whether they’re a sound investment as inflation remains stubbornly sticky:

Here’s a short rundown of TIPS’ key characteristics.

  • Principal protection. When you buy a TIPS bond, you are guaranteed to receive its full face value at maturity. This means that even if there is deflation, and the consumer price index (CPI) decreases, the principal value of your TIPS bond won’t be reduced.
  • Interest payments. The interest payments on TIPS bonds are adjusted for inflation. The interest rate, also known as the coupon rate, is fixed at issuance, but the interest payments adjust with changes in inflation. As the CPI rises, interest payments increase, giving investors a hedge against inflation.
  • Taxation. Although TIPS bonds protect against inflation, they’re still subject to federal income tax on interest payments and any capital gains. However, investors don’t incur state or local income taxes on interest earned from TIPS.

Unlike traditional bonds, TIPS adjust both principal and interest payments based on changes in the CPI. The idea is that TIPS can help investors maintain purchasing power when prices are

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Meet Uzbekistan’s first unicorn: e-commerce startup Uzum

Greta
Meet Uzbekistan’s first unicorn: e-commerce startup Uzum

Uzum, an e-commerce startup featuring on line procuring, fintech and foods deliveries to millions of consumers in Uzbekistan, has raised $114 million in funding, getting the country’s initial unicorn with a valuation of $1.16 billion.

Uzbekistan is fertile ground for startups, supplied the point that folks aged beneath 30 represent about 60% of its population of above 35 million. The country also enjoys a close to 100% literacy price (in accordance to its governing administration), much more than 76% internet penetration, and in excess of 75% smartphone penetration level. In 2020, the Central Asian country experienced just about 1,200 startups, 85% of which had been at the seed phase. Fintech startups dominated the marketplace with a 30% share, adopted by e-commerce startups at 27%, in accordance to estimates (PDF) by the Asian Enhancement Bank.

However, the region appears to be to have a shocking absence of e-commerce solutions, which might be amongst the motives why the sector accounted for only 2.2% of Uzbekistan’s total retail current market as of December 2022, for each a report (PDF) by KPMG. In accordance to Uzum’s co-founder and CEO, Djasur Djumaev, Uzbeks used to mainly store on the web through social media applications this sort of as Instagram, TikTok and Telegram. Prospects related with sellers in groups on social platforms, who had limited stock-retaining units (SKUs) and no logistics to communicate of.

“It was a shock for us to see that the penetration of smartphones was higher and telecom infrastructure was in place, but there was no e-commerce, no good fintech,” Djumaev informed TechCrunch.

Djumaev plainly observed the potential for a enterprise to do in Uzbekistan what Amazon has carried out in a lot of other countries: present a cohesive marketplace that claims conclude-to-conclusion logistics and shipping. Uzum begun by

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The Impact of Artificial Intelligence on Manufacturing: A Comprehensive Overview With Beckhoff

Greta
The Impact of Artificial Intelligence on Manufacturing: A Comprehensive Overview With Beckhoff

The integration of synthetic intelligence has emerged as a transformative drive. It is presently reshaping standard procedures and revolutionizing production paradigms. From boosting productivity to fostering sustainability, AI holds enormous possible to travel innovation and efficiency across many sectors. We attended Hannover Messe Press Preview past thirty day period. Fabian Bause, Product or service Supervisor at Beckhoff gave us his insights concerning the multifaceted methods in which AI is revolutionizing the manufacturing business, exploring real-environment apps, and envisioning upcoming tendencies.

In new several years, the idea of synthetic intelligence has transcended mere buzzwords, permeating each individual side of industrial functions. At Hannover Messe Push Preview last thirty day period, Fabian Bause, Products Manager at automation technological innovation organization Beckhoff, underscored the significance of knowledge AI not as an isolated entity but as a adaptable software for process automation. 

“What you have to realize is what artificial intelligence in fact is. It is just a technique to obtain a thing, to automate anything and procedures as nicely. It is not one thing that stands on its very own, but it is a software that we can use to automate processes, program and even physical machines.”

With Beckhoff’s experience spanning varied purposes, from wind turbines to stage technological innovation, the integration of AI has turn out to be integral to optimizing regulate methods and streamlining operations.

Synthetic Intelligence Automation

At the coronary heart of the producing renaissance lies the intersection of automation and sustainability. Bause emphasizes the pivotal function of automation in navigating financial complexities although preserving finite sources. 

“Automation serves as the linchpin for retaining equilibrium amidst the financial problems posed by a developing populace aspiring for elevated prosperity, which, in turn, intensifies calls for for methods. With finite uncooked materials and energy resources at our disposal, the vital gets clear:

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