Unlike previous economic expansions, the new economy has shown that it is possible to have sustained growth without higher inflation. In the new economy, if inflation can be restrained, there is a greater chance of boosting consumption across the globe. Big dollars are already being wagered on the prospect of phone, TV and PC convergence. You are able to benefit from the security associated with a guaranteed minimum value, when units are held to maturity, and you have the potential for capital appreciation from professionally selected stocks. Treasury strips defined Strips are zero coupon U.S. Treasury Bonds that are purchased at a discount to their maturity value.
Strips pay their full face value at a specified maturity date.
Instead of paying interest, the earnings are added to the original investment, increasing the strip's value as they approach maturity. Although no interest payments will be distributed during the life of the portfolio, investors are subject to income taxes at ordinary rates as if a distribution had occurred. U.S. Treasury zero coupon securities are also backed by the full faith and credit of the U.S. Government, however, units of the portfolio are not. Not Bank Guaranteed and May Lose Value. A new computer is added to the Internet approximately every four seconds .