Summary
- November prices were choppy, with costs of gasoline and shelter creating most of the increase.
- Non-seasonally adjusted inflation fell 0.16%, which will cause a drop in TIPS principal balances in January.
- With rising real yields, TIPS are looking to be a strong investment in 2017.
Read my full analysis at SeekingAlpha.com
Also, I have updated my Tracking Inflation and I Bonds page with these new numbers.
And here are the new January Inflation Indexes for TIPS.
This discussion raises in my mind what is the optimal amount of inflation bonds to hold in a diversified bond…