Jombo the Albino Numb Chuck Salesrobot

The Great Inflation Debate

Ok, gramps. I agree with you & bill gross that inflation and CPI are not the same. Regardles, just look at the 30+ years of CPI data, make your best guess what the next 10 years will look like... and tell me that TIPs are not a better deal than conventional treasuries.

The Great Inflation Debate

I would like to point out what a no-brainer it is to buy some 10 year tips (if you can get them trading below par, otherwise you do take some defllation risks).

Since 1970, there have only been 5 years where inflation was below 2%. There has never ever been a year with deflation. A ten year tip trading at 97 guarantees you at least 1.5% return in the most deflationary environment possible vs much larger returns if there is normal or excess inflation.