Friday, March 16, 2012

TIPS are unattractive

A great blog post from a new (to me) blogger, The Calafia Beach Pundit, who talks about what the negative real return on TIPs means for investors.

He concludes:
To sum up: TIPS are only attractive to an investor who believes 1) that inflation will prove to be higher than expected, and 2) that economic growth will continue to be disappointing

Thanks to Ben (one of my MBA students) for sending me the link.  We talked about TIPS this week.