US treasuries of every stripe are overbought due to the bad world economy and the investing world's perception that US treasuries are zero risk investments.Many of us, who are passive index investors, tend to buy US treasuries for our fixed income portfolios due to their "risk-free nature" and take our risks on the equity side of our portfolios.Charlie's OP points out the long term risk (a negative real return) of TIPS investments at this time.For those passive index investors who want to take as little risk as possible on the fixed income side of our portfolios, maybe a look at a CD ladder of 3 to 5 years would be a better alternative.
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