Personal Investments • Should we stay with total bond fund (BND) or move to TIPS?

[T]he "protection" wasn't considered worth the cost in lower dividends.

Note that regular bonds already have expected inflation factored into their price. (Otherwise, who would buy them?!) I knew that already, thus my current suspicion of my motive. I think at the time I moved into TIPS I had probably fallen into the trap of "don't just sit there, do something."

Interesting explanation. From inception to 2019 during low inflation environment TIPs has handsomely beaten total bond market.
See for yourself:

https://testfol.io/?d=eJytj0FLBDEMhf9Lz ... qGVQ%3D%3D

can you imagine the outperformance if we have inflationary issues to deal with like climate change, smaller population due to demographics, staff shortages due to mass deportations, or unsustainable fiscal debt? I see a lot of good reasons to use TIPS!

I do also own long treasuries as they do best in deflationary crashes

Statistics: Posted by chrisdds98 — Sat Jul 27, 2024 12:43 pm — Replies 15 — Views 1426

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