Personal Investments • When do TIPS make sense in a portfolio?

TIPS make sense if you are concerned about inflation affects on your fixed income investments. It is that simple. If you have nominal debt such as a mortgage, nominal bonds to match that debt is reasonable. Wages and stocks generally keep up with inflation, long term. The higher percentage of your assets that are in bonds, the more exposed you are to inflation. We may not have another bout of unexpected inflation for another 40 years or maybe we will have a trade war that gets out of hand and have a problem in a year or two.

Statistics: Posted by jimkinny — Thu Nov 21, 2024 5:07 am — Replies 13 — Views 1221

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