Advisors recommending TIPs always talk about the inflation protection but leave a hole where their discussion about interest rates should be.
Statements like "TIPS are anticipating no inflation for at least 7 years" is plain misleading. TIPS might be anticipating 10% inflation - and 10% interest rates, too. In which case they could easily be overpriced.
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Advisors recommending TIPs always talk about the inflation protection but leave a hole where their discussion about interest rates should be.
Jan 02 11:33 am
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All Comments by puttster »A Tip on TIPS [View article]
Statements like "TIPS are anticipating no inflation for at least 7 years" is plain misleading. TIPS might be anticipating 10% inflation - and 10% interest rates, too. In which case they could easily be overpriced.