Is it too late to move some of my bond allocation to TIPS?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
Fran K
Posts: 146
Joined: Sat Dec 26, 2020 6:50 pm

Is it too late to move some of my bond allocation to TIPS?

Post by Fran K »

I have almost my entire bond allocation in my portfolio in a short-term corporate bond ETF. That ETF has lost value year-to-date and I am wondering if moving 30% of that to a tips ETF at this point would be a good idea. I could tax loss harvest the corporate bond ETF of I sold it now. My understanding of tips is pretty limited. Would I only lose money if we experienced deflation or could the value of the TIPS ETF decrease if the current "high" inflation is transient and inflation drops to levels closer to the 2% target? What kind of total yield could I expect if inflation stays at the 4 to 5% level for the next year? Should I be buying TIPS directly instead of an ETF?
Time is your friend; impulse is your enemy. -John C. Bogle
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

TIPS have interest rate risk to real interest rates as other bonds do to nominal interest rates. TIPS can lose value if real rates increase. The difference between TIPS and nominal bonds is that TIPS are disconnected from inflation and everything is measured in real dollars. Today the SEC real yield for VAIPX, for example, is -1.78% meaning you can estimate a real loss of about 2%. Of course after correction for inflation the nominal yield can be positive, depending on inflation.

It is never to late to make different choices in bonds but it is probably wise for the long term holder of stocks and bonds to just decide on an investment choice and keep it for the duration.

Disclaimer: I have held half intermediate Treasury fund and half intermediate TIPS fund for the last twenty years or more and have no reason to change. If a person wants the portfolio as a whole to have a different combination of risk and return for any choice in funds used, one can change the stock/bond asset allocation and not worry about ambiguous and hard to parse differences among bonds.
CoAndy
Posts: 901
Joined: Thu Jun 06, 2013 4:45 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by CoAndy »

dbr wrote: Fri Oct 22, 2021 9:23 am TIPS have interest rate risk to real interest rates as other bonds do to nominal interest rates. TIPS can lose value if real rates increase. The difference between TIPS and nominal bonds is that TIPS are disconnected from inflation and everything is measured in real dollars. Today the SEC real yield for VAIPX, for example, is -1.78% meaning you can estimate a real loss of about 2%. Of course after correction for inflation the nominal yield can be positive, depending on inflation.

It is never to late to make different choices in bonds but it is probably wise for the long term holder of stocks and bonds to just decide on an investment choice and keep it for the duration.

Disclaimer: I have held half intermediate Treasury fund and half intermediate TIPS fund for the last twenty years or more and have no reason to change. If a person wants the portfolio as a whole to have a different combination of risk and return for any choice in funds used, one can change the stock/bond asset allocation and not worry about ambiguous and hard to parse differences among bonds.
Please forgive my ignorance but MorningStar shows the TTM Yield for VAIPX at 4.17%. Does this not "offset" the real loss possibility?
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

CoAndy wrote: Fri Oct 22, 2021 9:29 am
dbr wrote: Fri Oct 22, 2021 9:23 am TIPS have interest rate risk to real interest rates as other bonds do to nominal interest rates. TIPS can lose value if real rates increase. The difference between TIPS and nominal bonds is that TIPS are disconnected from inflation and everything is measured in real dollars. Today the SEC real yield for VAIPX, for example, is -1.78% meaning you can estimate a real loss of about 2%. Of course after correction for inflation the nominal yield can be positive, depending on inflation.

It is never to late to make different choices in bonds but it is probably wise for the long term holder of stocks and bonds to just decide on an investment choice and keep it for the duration.

Disclaimer: I have held half intermediate Treasury fund and half intermediate TIPS fund for the last twenty years or more and have no reason to change. If a person wants the portfolio as a whole to have a different combination of risk and return for any choice in funds used, one can change the stock/bond asset allocation and not worry about ambiguous and hard to parse differences among bonds.
Please forgive my ignorance but MorningStar shows the TTM Yield for VAIPX at 4.17%. Does this not "offset" the real loss possibility?
Morningstar is not quoting the same real SEC yield as the Vanguard number I gave you. They have tried to project a nominal yield by adding the current six month inflation value and have a difficult to parse report as a result. There is a mini-scandal effective these days regarding how to report projected yield for TIPS, but probably the best number to use is the real SEC as Vanguard quotes it and then if a person wants to speculate regarding inflation they can have at. Buying a security for the purpose of decoupling from inflation and then trying to go back and project nominal returns is a dicey proposition. That is especially true when inflation is as volatile as it is currently.
User avatar
nedsaid
Posts: 19275
Joined: Fri Nov 23, 2012 11:33 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by nedsaid »

I moved another 1% of my portfolio this week into TIPS, this follows a similar 1% move earlier this year. TIPS are now 18.4% of the fixed income portion of my retirement portfolio and 6.46% of the total. If it looks like "transitory" inflation is going to stick around, I will probably do more. TIPS are expensive here but they are the best of rather unattractive fixed income choices.
A fool and his money are good for business.
moorso
Posts: 202
Joined: Sun Feb 16, 2014 3:04 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by moorso »

For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
Why would you have heartburn? What are you afraid of?

Yes my TIPS are 50% of my bonds and my bonds 50% of my portfolio and has been for decades and won't change.
CoAndy
Posts: 901
Joined: Thu Jun 06, 2013 4:45 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by CoAndy »

moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
No heartburn here. That is exactly the AA I am shooting for in my 457.
User avatar
nedsaid
Posts: 19275
Joined: Fri Nov 23, 2012 11:33 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by nedsaid »

dbr wrote: Fri Oct 22, 2021 10:28 am
moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
Why would you have heartburn? What are you afraid of?

Yes my TIPS are 50% of my bonds and my bonds 50% of my portfolio and has been for decades and won't change.
I have a bit of heartburn with TIPS in light of their negative real yields. You are guaranteed to lose purchasing power to inflation but still give you better protection than nominal bonds. I have been buying TIPS but slowly and cautiously for this reason. Of course most nominal bonds trade at negative real yields too so TIPS are the best of unattractive fixed income options.
A fool and his money are good for business.
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

nedsaid wrote: Fri Oct 22, 2021 10:34 am
dbr wrote: Fri Oct 22, 2021 10:28 am
moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
Why would you have heartburn? What are you afraid of?

Yes my TIPS are 50% of my bonds and my bonds 50% of my portfolio and has been for decades and won't change.
I have a bit of heartburn with TIPS in light of their negative real yields. You are guaranteed to lose purchasing power to inflation but still give you better protection than nominal bonds. I have been buying TIPS but slowly and cautiously for this reason. Of course most nominal bonds trade at negative real yields too so TIPS are the best of unattractive fixed income options.
You can't solve the current levels of real and nominal interest rates by fishing around for a better choice of investments. Sometimes the bowl is full of pits and not cherries. These things are expected from time to time in the long run plan.

A person concerned with a short run plan at the moment is just going to have to harden up and deal with it for now.
User avatar
nedsaid
Posts: 19275
Joined: Fri Nov 23, 2012 11:33 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by nedsaid »

dbr wrote: Fri Oct 22, 2021 10:37 am
nedsaid wrote: Fri Oct 22, 2021 10:34 am
dbr wrote: Fri Oct 22, 2021 10:28 am
moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
Why would you have heartburn? What are you afraid of?

Yes my TIPS are 50% of my bonds and my bonds 50% of my portfolio and has been for decades and won't change.
I have a bit of heartburn with TIPS in light of their negative real yields. You are guaranteed to lose purchasing power to inflation but still give you better protection than nominal bonds. I have been buying TIPS but slowly and cautiously for this reason. Of course most nominal bonds trade at negative real yields too so TIPS are the best of unattractive fixed income options.
You can't solve the current levels of real and nominal interest rates by fishing around for a better choice of investments. Sometimes the bowl is full of pits and not cherries. These things are expected from time to time in the long run plan.

A person concerned with a short run plan at the moment is just going to have to harden up and deal with it for now.
Yep. That was my conclusion too.
A fool and his money are good for business.
User avatar
Topic Author
Fran K
Posts: 146
Joined: Sat Dec 26, 2020 6:50 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by Fran K »

Thanks for the reply's thus far. It sounds like putting 30% of my bond allocation into TIPS is not a bad idea and will likely be better than my current allocation (making about 1.7% nominal yield) in the short term if inflation stays high. If I keep this allocation long-term I can at least have a little better inflation protection in the future. My portfolio is pretty young. My intent is not to be too reactionary but find a good long-term allocation that I can stick with in different market scenarios.

Agree or disagree with the above?
Time is your friend; impulse is your enemy. -John C. Bogle
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

Fran K wrote: Fri Oct 22, 2021 11:14 am Thanks for the reply's thus far. It sounds like putting 30% of my bond allocation into TIPS is not a bad idea and will likely be better than my current allocation (making about 1.7% nominal yield) in the short term if inflation stays high. If I keep this allocation long-term I can at least have a little better inflation protection in the future. My portfolio is pretty young. My intent is not to be too reactionary but find a good long-term allocation that I can stick with in different market scenarios.

Agree or disagree with the above?
I don't agree that you should be considering that there is short run windfall from inflation indexed bonds due a present uptick in inflation.

I do agree the long term plan makes sense.
User avatar
Topic Author
Fran K
Posts: 146
Joined: Sat Dec 26, 2020 6:50 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by Fran K »

dbr wrote: Fri Oct 22, 2021 11:17 am
Fran K wrote: Fri Oct 22, 2021 11:14 am Thanks for the reply's thus far. It sounds like putting 30% of my bond allocation into TIPS is not a bad idea and will likely be better than my current allocation (making about 1.7% nominal yield) in the short term if inflation stays high. If I keep this allocation long-term I can at least have a little better inflation protection in the future. My portfolio is pretty young. My intent is not to be too reactionary but find a good long-term allocation that I can stick with in different market scenarios.

Agree or disagree with the above?
I don't agree that you should be considering that there is short run windfall from inflation indexed bonds due a present uptick in inflation.

I do agree the long term plan makes sense.
Thanks dbr. Are you saying I should not expect better returns in the short term if inflation stays high or just that should not be driving my decision?
Time is your friend; impulse is your enemy. -John C. Bogle
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

Fran K wrote: Fri Oct 22, 2021 11:20 am
dbr wrote: Fri Oct 22, 2021 11:17 am
Fran K wrote: Fri Oct 22, 2021 11:14 am Thanks for the reply's thus far. It sounds like putting 30% of my bond allocation into TIPS is not a bad idea and will likely be better than my current allocation (making about 1.7% nominal yield) in the short term if inflation stays high. If I keep this allocation long-term I can at least have a little better inflation protection in the future. My portfolio is pretty young. My intent is not to be too reactionary but find a good long-term allocation that I can stick with in different market scenarios.

Agree or disagree with the above?
I don't agree that you should be considering that there is short run windfall from inflation indexed bonds due a present uptick in inflation.

I do agree the long term plan makes sense.
Thanks dbr. Are you saying I should not expect better returns in the short term if inflation stays high or just that should not be driving my decision?
Short term nominal returns caused by volatile inflation should not be driving most peoples investment strategy. Real returns are not higher at all. In fact the real return of TIPS right now is more negative than almost ever. The same is true of I bonds and of all nominal bonds. Low real interest rates are a problem for savers and investors and there is no practical relief for the pain. Savers and investors need to pray the situation will change. It won't be by jumping on a short term windfall in nominal returns.
aristotelian
Posts: 12277
Joined: Wed Jan 11, 2017 7:05 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by aristotelian »

It's never too late. The question is why and what difference will it make. TIPS are inflation protected, so if there is unexpected inflation they will do better than nominal Treasuries. However, they currently have negative yields so there is no reason to think TIPS will outperform nominal Treasuries if inflation stays on course for whatever the market is currently predicting. Treasuries would do better if inflation is less than expected, such as might occur with a stock market crash. Personally I do not like the idea of locked in negative real yield. At least I Bonds give true inflation protection with guaranteed real yield of at least 0.
User avatar
dodecahedron
Posts: 6607
Joined: Tue Nov 12, 2013 11:28 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dodecahedron »

dbr wrote: Fri Oct 22, 2021 11:27 am Short term nominal returns caused by volatile inflation should not be driving most peoples investment strategy. Real returns are not higher at all. In fact the real return of TIPS right now is more negative than almost ever. The same is true of I bonds and of all nominal bonds.
A correction to the above: I bonds do not have negative real yields. At worst (which is currently the case), their real yields are zero. The real yields of series I bonds have a zero lower bound.

(All of the above, of course, is on a pre-tax basis. After taking taxes into account, most investors will experience negative real after-tax yields even on I bonds. The only exception would be taxpayers facing zero marginal rates and/or taxpayers with qualifying higher educational expenses that can be used to permit tax-free redemptions of series I bonds.)
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dbr »

dodecahedron wrote: Fri Oct 22, 2021 12:04 pm
dbr wrote: Fri Oct 22, 2021 11:27 am Short term nominal returns caused by volatile inflation should not be driving most peoples investment strategy. Real returns are not higher at all. In fact the real return of TIPS right now is more negative than almost ever. The same is true of I bonds and of all nominal bonds.
A correction to the above: I bonds do not have negative real yields. At worst (which is currently the case), their real yields are zero. The real yields of series I bonds have a zero lower bound.

(All of the above, of course, is on a pre-tax basis. After taking taxes into account, most investors will experience negative real after-tax yields even on I bonds. The only exception would be taxpayers facing zero marginal rates and/or taxpayers with qualifying higher educational expenses that can be used to permit tax-free redemptions of series I bonds.)
But, of course, you are right.
BigJohn
Posts: 2627
Joined: Wed Apr 02, 2014 11:27 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by BigJohn »

You can’t buy insurance for something that has already happened. So, it’s too late to capture any benefits due to the current run up in actual and expected inflation. It’s not too late if you want to protect yourself in the eventuality that actual inflation is higher than currently expected.
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
User avatar
dodecahedron
Posts: 6607
Joined: Tue Nov 12, 2013 11:28 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dodecahedron »

BigJohn wrote: Fri Oct 22, 2021 5:57 pm You can’t buy insurance for something that has already happened. So, it’s too late to capture any benefits due to the current run up in actual and expected inflation. It’s not too late if you want to protect yourself in the eventuality that actual inflation is higher than currently expected.
Actually, with I bonds, you *can* buy insurance for something that has already happened, since if you buy a bond before Nov 1, you will earn interest based on inflation that happened earlier this year.

(The same might seem to be true of TIPS, but TIPS are different because their price is set in the market and you will pay a premium price that bakes in the retroactive inflation embedded in the interest rate.)
dandinsac
Posts: 282
Joined: Sat Jul 30, 2016 8:34 am

Re: Is it too late to move some of my bond allocation to TIPS?

Post by dandinsac »

If your bond allocation is in a tax advantaged account, you should consider buying actual TIPS to offset future expenses. Buying these will give you a much better perspective of the price premium you are paying relative to the future dividends and inflation protection. You can include these in your bond allocations.

Buying a TIPS fund is easy, but it’s difficult for me to understand how these funds are valued and how well they provide inflation protection.
BigJohn
Posts: 2627
Joined: Wed Apr 02, 2014 11:27 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by BigJohn »

dodecahedron wrote: Fri Oct 22, 2021 6:27 pm
BigJohn wrote: Fri Oct 22, 2021 5:57 pm You can’t buy insurance for something that has already happened. So, it’s too late to capture any benefits due to the current run up in actual and expected inflation. It’s not too late if you want to protect yourself in the eventuality that actual inflation is higher than currently expected.
Actually, with I bonds, you *can* buy insurance for something that has already happened, since if you buy a bond before Nov 1, you will earn interest based on inflation that happened earlier this year.

(The same might seem to be true of TIPS, but TIPS are different because their price is set in the market and you will pay a premium price that bakes in the retroactive inflation embedded in the interest rate.)
The purchase limit on I bonds make them a tool of limited use for many (including me). Not sure about the OP’s position but while I agree with your point, I was answering the question about buying TIPS.
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
User avatar
Topic Author
Fran K
Posts: 146
Joined: Sat Dec 26, 2020 6:50 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by Fran K »

Again, thanks for the responses. I started buying I bonds last year and am maxed out for my spouse and me for now. To be clear, I'm really only going to get a premium due to inflation from tips (near term) if current inflation expectations are lower then what they turn out to actually be, correct? Long term I will be better protected from future high inflation periods.
Time is your friend; impulse is your enemy. -John C. Bogle
User avatar
iceport
Posts: 6054
Joined: Sat Apr 07, 2007 4:29 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by iceport »

dbr wrote: Fri Oct 22, 2021 9:23 am Disclaimer: I have held half intermediate Treasury fund and half intermediate TIPS fund for the last twenty years or more and have no reason to change.
Apparently, dbr, you are one of the few... to hold your long-term asset allocation for the actual long term! Your post is a vivid reminder of days gone by.

There was a time in the early days of this particular forum when the standard, default AA advice included an equal split in the fixed income allocation between a total bond market fund and a TIPS fund. That was always billed as a long-term, buy-and-hold allocation.

Yet it didn't take long after the Great Recession for the advice to hold TIPS in equal weight with the total bond market to fall by the wayside. It seemed to fall away quickly but relatively quietly. I don't recall much explicit acknowledgement that the older advice was faulty. But by virtue of the fact that the advice to hold any TIPS at all — let alone dedicating fully half of one's bond position in TIPS — has completely ceased, it seems to me the older advice must have been viewed as a mistake of some kind. Apparently, it only take a little volatility on the fixed income side for folks to get 100% spooked.

Personally, I never understood how an asset could go from being recommended at 50% of fixed income to being completely avoided. TIPS played a prominent role (with the 50/50 TIPS/TBM recommendation) in The Bogleheads' Guide to Investing, if I recall correctly.

In spite of all that, here we find ourselves with good, well-intentioned posts wondering if it's OK to hold up to 30% of bonds in TIPS. Is this still a buy-and-hold sort of place?

Like dbr, despite some relatively minor adjustments to the fixed income side of the portfolio, I have not abandoned my allocation to TIPS. It's not half of fixed income, but it's about 40% of fixed income that's not in a stable value fund.

OP, I don't know if you missed all of the latest surge in TIPS performance, if it's going to continue or reverse course, but if you hold onto a TIPS allocation for long enough, chances are that you'll be just fine, in the long run.

Image
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
chrisdds98
Posts: 500
Joined: Tue May 19, 2015 9:55 pm
Location: Austin, TX

Re: Is it too late to move some of my bond allocation to TIPS?

Post by chrisdds98 »

moorso wrote: Fri Oct 22, 2021 10:21 am For a million dollar portfolio lets say with a 40:50:10 allocation (stocks, bonds ,cash) and assuming that intermediate term bonds are the same as TIPS that indicates

$400,000 in VTSAX
$200,000 in VBTLX
$200,000 in VAIPX
$100,000 in cash

That gives one a 20% total allocation into TIPS. Anyone have heartburn over this because its essentially where I am. And it means that VAIPX represents 40% of the fixed income portion.
I would have heartburn over the missing 100k in bonds ;)

I might have a little less cash, maybe 50k cash 50k in VTIP (short term TIPS)
BigJohn
Posts: 2627
Joined: Wed Apr 02, 2014 11:27 pm

Re: Is it too late to move some of my bond allocation to TIPS?

Post by BigJohn »

Fran K wrote: Sat Oct 23, 2021 10:11 am To be clear, I'm really only going to get a premium due to inflation from tips (near term) if current inflation expectations are lower then what they turn out to actually be, correct? Long term I will be better protected from future high inflation periods.
Yes, if actual inflation is higher than current expectations, TIPS will be better than a similar nominal Treasury bond. If actual inflation is lower, nominal Treasuries will do better. Long term I think of it as buying insurance to protect that part of my portfolio from unexpected high inflation.
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
Post Reply