Was wondering if anyone is buying TIPS (Treasury Inflation Protected Securities)? I have always kept some and some i-bonds (until recently when they went to crap with a 0% inflation payment and limit to $5K purchase). Turns out with the inflation kicking in these have become "portfolio savers" and have really balanced my portfolio nicely (TIPS Vanguard Fund has returned 15% in the last year). I chose to use the Vanguard Fund due to all the tax consequences and nuances of holding the TIPs as actual bonds.
So, it was and is good to have in the overall portfolio. Business Week called it in 2005 , and MSNBC called it back in 2002 when inflation was but a whisper (I like what he says, "The best time to buy flood insurance is during a drought) but my question now is, do you buy more? I guess you do if you believe we are on the front end of the inflationary spiral (as I do) or do you think, with oil prices recently receding, we are on the back end of the inflationary spiral?
Tags: TIPS, TreasuryInflation Protected Bonds, Investing, IBond
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