Pimco and others are calling for inflation and suggest buy Tips. Would you buy now. Please make a case either way
I recommended TIPS to my daughter last week as a supplement to her 401k. Forbes analyst Steve Hanke recommends TIPS and gold in the March 16 issue. If you buy them do it in an IRA or Roth IRA (or 401k if it's TIPS are a choice). With all the borrowing and money printing the govt is doing now inflation will be back with a vengeance. Another alternative is to short US Treasuries, which will decline in value when bond holders demand a higher interest rate due to inflation. The ETF TBT is double short the long treasury bond.
simple answer is you always want to be diversified and therefore have some exposure to TIPS.
US government has been printing a lot of money and that usually leads to inflation.
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