Cheneys betting on bad news?

[sabra]

http://articles.moneycentral.msn.com/Investing/Extra/CheneysBettingonBadNews.aspx

Cheneys betting on bad news?
A look at the president and vice president's financial disclosure forms.
By Kiplinger's Personal Finance Magazine

Vice President Dick Cheney's financial advisers are apparently betting on a rise in inflation and interest rates and on a decline in the value of the dollar against foreign currencies. That's the conclusion we draw after scouring the financial disclosure form released by Cheney recently.

As of the end of last year, Cheney and his wife, Lynne, held between $10 million and $25 million in Vanguard Short-Term Tax-Exempt fund (VWSTX, news, msgs) (it's impossible to be more precise because the disclosure form lists holdings within ranges). The fund's holdings of tax-free municipal bonds mature, on average, in a little more than a year -- meaning that the fund should hold up well if rates rise.

The Cheneys held another $1 million to $5 million in Vanguard Tax-Exempt Money Market fund (VMSXX, news, msgs), which is practically risk-free and could benefit from continued increases in short-term interest rates. And the couple had between $2 million and $10 million in Vanguard Inflation-Protected Securities fund (VIPSX, news, msgs). The principal and interest payments of inflation-protected bonds rise along with consumer prices, making them good inflation hedges.

Expecting dollar drop?
The Cheneys also had between $10 million and $25 million in American Century International Bond (BEGBX, news, msgs). The fund buys mainly high-quality foreign bonds (predominantly in Europe) and rarely hedges against possible increases in the value of the dollar. Indeed, its prospectus limits dollar exposure to 25% of assets and the fund currently has only 6% of assets in dollars, according to an American Century spokesman.

[MADem]

1. Incredible. Simply incredible.

But, then, one knew it instinctively that they'd be sure to take care of themselves....

SIX percent invested in dollars? I'm surprised people aren't jumping out of skysscrapers on Wall Street....

[iamjoy]

2. Should We Follow His Lead

protect our own portfolio? Or is it a trap?

Can we make a political issue on Cheney voting against America?

[Virginia Dare]

3. Bill Gates has been following a similar tactic for a while now..

I read a book recently about the Wall Street scam of 401(k) plans, and that was basically their advice as well.


http://www.bankrate.com/brm/news/investing/20031021a1.asp

[ComerPerro]

6. You're damn right we should make it a political issue

[Sammy Pepys]

4. Well, the guy is old....

Being heavy in stocks is not a smart way to invest when you're old.

[ComerPerro]

5. Shouldn't that be incredibly illegal, since he can implement these changes

No wonder they are so gung-ho about devaluing the dollar

[Virginia Dare]

10. Yes, and this from guy...

who to this day claims to have no financial interest in Halliburton, when his stock options grow more and more valuable by the day.

[unpossibles]

11. I was wondering about that myself

like a policy-led insider trading type of thing.

[hughee99]

7. So if he were invested in sectors that were profitable

like oil and defense, we could talk about how he's getting rich(er) of his own administration's policies. If he were invested in sectors that weren't profitable we could talk about how his bad investments show a lack of judgment and understanding of what's going on. Instead, he's invested in something that's not going to give him a great return, but no matter what happens to the market, won't really lose any value. Now he's betting against the American economy. I'm not a fan of Darth at all, but investing is really a no-win situation (politically) for any politician.

[Virginia Dare]

8. Au contraire...

it is a win-win situation for the whole stinking lot of them. Bet on it.

[hughee99]

12. Not politically (as I said)

Any politician who has $$ invested just about anywhere in the market opens themselves up to criticism from a political standpoint.

[Virginia Dare]

13. That reminds me...

of the debates between the Chimp and Kerry last year when Kerry tried to make a point about S-Corps and how rich people shelter their money, and call it a "small business". This is a BIG LOOPHOLE, and one that would outrage most of the public out there if it was adequately explained.

Of course the Chimp made a big joke out it, the point went way over everybody's heads, and the media never picked up on it.

I guess my point is, it's very difficult for any politician to make political hay out of the other guy's investments. Usually, the other guy just lies.

KERRY: You can't stop all outsourcing, Charlie. I've never promised that. I'm not going to, because that would be pandering. You can't.

But what you can do is create a fair playing field, and that's what I'm talking about.

But let me just address what the president just said.

Ladies and gentlemen, that's just not true what he said. The Wall Street Journal said 96 percent of small businesses are not affected at all by my plan.

And you know why he gets that count? The president got $84 from a timber company that owns, and he's counted as a small business. Dick Cheney's counted as a small business. That's how they do things. That's just not right.

BUSH: I own a timber company?

(LAUGHTER)

That's news to me.

(LAUGHTER)

Need some wood?

(LAUGHTER)

Most small businesses are Subchapter S corps. They just are.

http://www.debates.org/pages/trans2004c.html

[katty]

9. well mister greed run amok should know!