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Personal Investments • Should every investor (who holds bonds) hold at least some nominal bonds?

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OP you are overthinking this. At 50x your TIPS ladder gives you all the comfort you will need.

Also I do not agree that holding all TIPS in your fixed income creates any incremental risk compared to nominal bonds particularly if the nominal bonds contain credit risk (non-investment grade). To the contrary, you are protected against a runaway inflation scenario to a far greater extent than a holder of nominal bonds. Just because an individual's personal inflation rate varies from CPI does not invalidate the concept of inflation protection. That is a silly argument.

Statistics: Posted by Escapevelocity — Fri May 10, 2024 8:52 am — Replies 17 — Views 1346



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