- Inflation over the last 10 years has averaged just 1.8% a year, much lower than investors were predicting in 2010.
- Investing in Treasury Inflation-Protected Securities is a “bet” that inflation will run higher than expected, or at least match expectations.
- TIPS have consistently underperformed nominal Treasurys in the last decade because inflation remained stubbornly low.
I’ve been writing about inflation-protected investments – Treasury Inflation-Protected Securities and U.S. Series I Savings Bonds – since 2011, and I’ve been investing in these products since 1999. So today I am going to take a look at how these investments have been doing. The answer is: Not so well.