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Home Inflation Hedge Archive for category "TIPS"

Treasury Inflation Protected Bonds

Published on October 11, 2012 by in TIPS

Over the past several years Treasury Inflation Protected Securities (TIPS) have performed in a solid and steady way.  They have slowly ground out gains with very little volatility (with the obvious exception of 2008 when everything except US Treasuries got slammed).  iShares has an ETF that holds TIPS.  Its symbol is TIP.  Since the 2008 financial crisis TIP has climbed slowly and steadily upwards providing gains in the 6% to 13% range.  At the same time long term bonds (TLT) have been very volatile and much more sensitive to interest rates and threats of a financial crisis (the risk on / risk off trade).     If you’re worried about your long term bonds being at historically high levels you might want to consider TIP as a way to diversify your bond portfolio.  This isn’t a recommendation of any bond fund or even Treasury Inflation Protected Securities in themselves.  We just want to give you something to think about when you structure your own portfolio.  It has been a very

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