MARCH 1 UPDATE

I've stuck with and fine tuned the inflation portfolio gradually. As Treasurys have risen and yields fallen modestly over the past few weeks I've positioned more into adjustable rate funds (ARFs) and maintained positions in high yield funds and gold and energy stocks.

High yield gives you a cushion so that if they start to fall in price with rising rates or falling stock markets, you have a few weeks to decide to get out or not before you could lose capital equal to a year's interest payments. My three favorite yield funds are LSBDX, PIMIX, and VWEAX all of which are very professional and fairly conservative for that normally riskier class. These are not the highest of the high yield funds, quite the contrary, and that is why I like them.

Gold and energy are naturals over the long run as they have been already for a decade. Brent and WTI crude oil made new post 2008 highs this past week and gold and silver made new all time highs today. It's hard to buy them at these levels, but also hard to buy them when they fall. If you don't own them already long since, the only way to buy would be gradually over time at set intervals: dollar cost averaging.

FFRHX, PFIIX, and PTSHX are my main ARF entries for rising rates, with much smaller pieces of PFL or PFN and EVV for a bit of a "kick". AEB is a single company A rated perpetual AR bond packaged as a NYSE stock. I've mentioned them all recently below. These funds don't pay much interest now, but that's the reason  for buying them before rates rise. I think of them as modestly more volatile  substitutes for money market funds while waiting for rates to rise. Money market funds (MMF) pay essentially nothing now while these funds pay 1-3%. But not only will the payout rate rise but the price of these funds will rise as well if and when rates rise. But it's OK simply to sit in MMFs and wait for rates to rise. I prefer to earn 1-3% instead. Every percent earned adds to annual returns

I'll discuss gold and golds and commodities more soon.

As always, keep in mind that this is just my financial diary or thinking and not recommendations for others.

Also with Loomis Sayles. Pimco, and Vanguard funds there are fund classes with very small initial deposits required, and they cost little more than the "institutional" class. The latter are offered through various fund platforms, like Vanguard, for $25,000 minimums instead of $1-5 million! So good management is available for reasonable annual fees.

QuantumOnLine.com is my favorite place for basic information on yield instruments. It's free, and they won't bother you with emails ever (so far in 5 years) if you register, but if you use it much consider a donation.