“‘Privatized TIPS’ … absolutely dominate inflation … leave oil, gold and everything else in the dust”

By Travis Johnson, Stock Gumshoe, February 2, 2012

This ad is not exactly brand new, but folks have been sending in queries about it for a few weeks, and pretty steadily, so I thought I’d try to get some answers out for you.

The pitch is from Ian Wyatt, who’s trying to sell his Top Stock Insights newsletter by throwing in a “special report” on a kind of investment that he calls “Privatized TIPS.” And your friendly neighborhood Gumshoe just looooves when newsletter guys invent a new official-sounding name for their top secret investment strategies, so let’s see what the heck he’s talking about.

Here’s the sales pitch to get you wetting your lips:

“The Treasury. The Fed. The stock exchange itself: they’re all killing the average investor.

‘People already know these facts in their hearts – even if they can’t bring themselves to believe it or recognize it.

“So what’s the answer? How can investors possibly hope to get ahead?

“How can you win when the one investment that’s supposed to protect you from inflation is a well-known fake?

“In the letter below, I’m going to tell you exactly which assets you should own during this ongoing period of impending recession, inflation and currency collapse – and I’ll tell you the one and only investment that the world’s richest investors own today to protect themselves during these uncertain times… “

Who wouldn’t want that, right? So what is it that you should buy to protect yourself and profit from the coming inflation? “Privatized TIPS,” says Wyatt, borrowing the acronym that we probably all recognize as being from the US Treasure (Treasury Inflation Protected Securities, or TIPS, are US bonds and notes that adjust for inflation as measured by the CPI). The argument is in part that these are boring old bonds that can barely keep up with the CPI, and, perhaps more importantly, that the CPI understates “real” cost of living inflation.

Here’s more of his pitch:

“Without completely revealing the secret of “Privatized TIPS” I can tell you that they’re a form of security – like a stock or a bond or a mutual fund.

“But they’re not your typical security.

“‘Privatized TIPS’ have nothing to do with the TIPS the Government sells either.

“Rather, they’re a rare form of security used by the world’s richest and most powerful investors to safely and reliably grow their wealth during periods of market uncertainty and high inflation.”

And he pulls from the well-known-billionaires list to get us excited about joining their ranks:

  • “In fact, the richest investor in the world, the Mexican telecom magnate Carlos Slim currently has over 60% of his wealth locked up in just one “Privatized TIPS” investment.
  • Bill Gates – now the second richest man in the world – has been famously selling off his shares in Microsoft (NYSE: MSFT) –