No I think you're wrong... the ride with a 30 year TIPS can be very very bumpy... Don't be deceived...Gosh, wow, I'm sorry but I think that may not be correct.As mentioned, I threw out the Civil War number from the 1860's, but the same punchline applies....
The willingness to commit investment capital for 30 years is an enormous thing to do... (e.g. Ask yourself what you were doing 30 years ago?)
And in turn, equity markets have quite handsomely rewarded those who have done so, as illustrated in McQ's chart (e.g. Stock returns were "Almost" always significantly higher than today's 30 year TIPS yields)
But as stated elsewhere by others, a 30-Yr TIPS is likely to give you a hopefully smoother ride along the way .... (Though make no mistake that 30-yr TIPS can also come with extreme volatility..., but I do assume it will be lower in amplitude than stocks, though I have never seen it charted since TIPS haven't even existed for 30 years yet...)
Right?
But it will possibly be less bumpy than stocks.... And that's why the expected return with stocks is so much higher...
Statistics: Posted by CraigTester — Wed Jan 22, 2025 7:50 pm — Replies 4048 — Views 957043