Can you please explain what exactly does this mean:
However, TIPS prices are set based on supply and demand, and when there is heavy demand for an inflation hedge their price can surge. Of course this surge in price can actually reduce your overall returns to the point that standard treasuries would have performed better even if expected inflation occurs.
Are you saying that with the increase in prices for TIPS, one could loose money? I am in VIPSX and it has been going up, do you recommend I pull out of it?
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Can you please explain what exactly does this mean:
Mar 05 15:08 pm
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All Comments by Amitps »TIPS: Great or Terrible? [View article]
However, TIPS prices are set based on supply and demand, and when there is heavy demand for an inflation hedge their price can surge. Of course this surge in price can actually reduce your overall returns to the point that standard treasuries would have performed better even if expected inflation occurs.
Are you saying that with the increase in prices for TIPS, one could loose money? I am in VIPSX and it has been going up, do you recommend I pull out of it?