4 ms·

Dump the TIPS man.

• lionhearted 15y ago
  > Dump the TIPS man. I had some USD, didn't see any good buys, and wanted to stay liquid in USD. I figured inflation was definitely coming, so even if interest rates rose (unlikely anyways, but the only real risk) it'd likely be cancelled by the inflation premium. The bonds appreciated around 7% in four months, so it worked out okay.
  • pinko 15y ago
    The big problem with TIPS is that the government gooses the CPI formula to understate inflation, so they're really providing an (inflation - n%) return, not an (inflation + n%) return. That being said, I also own a small amount of them.