Category Archives: Investing in TIPS

TIPS versus stocks: Best investment in the last 5 years?

I stumbled upon this fact yesterday as I was looking at historical TIPS prices: TIPS have outperformed stocks in the last five years, despite four consecutive positive years for the stock market. Over the last five years, the TIP ETF … Continue reading

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Heading into 2013: Keep an eye on the inflation breakeven rate

I try to check, at least occasionally, the TIPS inflation breakeven rate – determined by subtracting the current TIPS yield from the current nominal Treasury rate for the same term. A high 10-year breakeven rate (generally above 2.5%) indicates that … Continue reading

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Recapping 2012: The year in TIPS

It’s been a sorry year for buy-and-hold investors in Treasury Inflation-Protected Securities, with yields plummeting to ever-lower all-time records. That means TIPS – like all Treasuries – are very expensive and produce little income. There are currently 35 TIPS issues … Continue reading

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4-year, 4-month TIPS auctions at a record-low -1.496%

Yes, I knew there was a TIPS auction today, and actually thought about it around noon. But then I pretty much erased it from my mind. I mean, who really cares? Who is actually buying this thing? Well, today’s auction … Continue reading

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Inflation turns to deflation in November

The U.S. Labor Department reported today that the ‘headline’ consumer price index fell 0.3% in November, primarily because of a big drop in gasoline prices. In the past year, consumer prices have risen 1.8 percent. You can read the full … Continue reading

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