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Leaving aside the question of whether it's portfolio appropriate or a good idea, how does an individual reasonably invest in global investment grade credit or i
by aftbit 4y ago
Leaving aside the question of whether it's portfolio appropriate or a good idea, how does an individual reasonably invest in global investment grade credit or inflation protected bonds?
I see TIPS in the US paying at ~1.5% while 5 year T-notes are at 4+%. Assuming that inflation will continue to drop, but remain above the target, wouldn't we expect to see T-bills and T-notes continuing to outperform TIPS?
Surely I am misunderstanding something...
- makestuff 4y agoOn interactive brokers you can modify trading permissions to trade fixed income products. I assume other brokers have similar settings.
- daydream 4y agoStarting with I bonds is your best bet as an individual. Though there’s a cap on how much you can buy per year.
- drexlspivey 4y agoTIPS yield are real yields (already adjusted for inflation) while T-Notes aren't so they aren't really comparable. In essence you are getting 1.5% on top of inflation.
- coolbreezetft22 4y agoWith 3-12 month CDs now offering much higher interest than my fixed-rate mortgage I'm just happy to dump my extra cash there (after having maxed out on ibonds I guess). I guess I don't see the need to "beat inflation" when my consumption on things exposed to inflation are mostly fixed. E.g. I still eat the same amount of food each month