BondGuy

New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today?

@ Smarty
If excess money creation is the fear, why did the 10 year TIPS under-perform? Please try to make sense. As Jansen explains, this is just too much supply for the market to absorb on one hour notice. End of story.

Runaway Inflation: Do TIPS Really Help?

However poor a measure of inflation CPI may be, the so-called advantage of stocks, the equity premium over safe bonds, is also measured against CPI. A 10 year TIPS guarantees 1.7% real return over the next decade. Will you be able to beat that with stocks over the next 10 years? If history is a guide, the answer is yes. The equity premium is estimated to be a 5 percent real return over safe bonds, yielding a predicted 6.7% real return The only question is whether history will repeat itself. We all know the answer to that. Don't we?

Bond Expert: Refunding and Treasury Financing

Actually, TIPS are good for locals, because there is relatively little foreign ownership. That means they will not suffer as much as nominal Treasuries in a dollar crisis, nor are yields unnaturally depressed by SWF safe harbor buying, a serious worry with nominals at this point. As a class, they have performed very well historically. The CPI calculation is a negative, but this is a known problem, and thus, the yield/price reflects the somewhat diminished inflation protection. The biggest problem is liquidity -- these should be buy and hold instruments, held primarily as core holdings in retirement accounts due to the unfavorable tax treatment. They won't make you a millionaire, but if you are one already, they insure that you will stay that way forever, after inflation.

Where's the 'Protection' in TIPS? Better to Go with Silver and Gold

Your blog is shockingly inept. With 4+% inflation, a 2.75% money market is a lot worse than TIPS. Moreover, 20 year tips are at 1.8% plus inflation, which is a strong case for owning thm at this juncture. Bingo on the point that they are insurance against another Jimmy Carter presidency, which killed Ma and Pa saver. They should be in TIPS instead of the equity portfolios that the mutual fund industry is pushing at retirees. I won't even mention the bad advice dished out by 99% of the commission brokers. Disgraceful.