The data from the TIPSwatch article cited above by Birdfood doesn't provide such a compelling argument for this, at least for the past 10 years. As Birdfood notes, the data shows that nominals outperformed TIPS in 13 out of 20 six month intervals. So if your goal is to have more money in your pocket when that note matures in 10 years, over the last decade, you should have chosen nominals. If your crystal ball shows that inflation will pick up again (or for that matter tank), then hedge your bets accordingly, but there's a chance (I don't know how big) that you may be just spinning your wheels.
But the default is TIPS for individual investors hedging future real liabilities (like living costs).
Statistics: Posted by cks — Sun Nov 17, 2024 6:47 am — Replies 109 — Views 7609