Makes sense. So when there is inflation the fed raises rates so you get a little yield for the inflation closely followed by your bond value going down in proportion to your duration length.They did protect from inflation risk.Shout out to Our own Edward McQ re: referenced in an article in WSJ this morning where Jason Zweig contends (I paraphrase) … at high market valuations like most agree we have today, future stock market returns may be lower … and older investors retired or near the end of their earnings lifespan might benefit from buying TIPs to protect themselves from a market downturn.
I agree with the contention folks like me at age 64 retired should own more bonds. I am 50/50 in our portfolio.
When I look back at TIPs fund returns I don’t see where they protected anyone from inflation recently.
I like a short term 3 year treasury ladder yielding about 4.2%.
Is there any reason to think TIPs will do what they are supposed to do if inflation continues in my retirement years ahead?
But they still had duration risk.
2 different things.
Statistics: Posted by Parkinglotracer — Sat Feb 08, 2025 9:10 pm
