It’s arduous to discover a extra complicated “secure” funding than the federal government bonds referred to as TIPS, for Treasury inflation-protected securities—and that features the taxes on them. However individuals who keep away from them now could possibly be making a mistake, particularly in the event that they’re going through retirement.
No surprise traders are bewildered. TIPS say they provide inflation safety, however final yr, when inflation roared, many holders of funds with longer-term TIPS had steep unfavorable returns. That’s as a result of TIPS, like different bonds, endure when rates of interest rise.
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