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Subject:  an arguement for TIPS Date:  7/26/2020  3:30 PM
Author:  blacktreechaser Number:  36823 of 37062

a quote from the article:

""Many retirees and soon-to-be retirees nevertheless are avoiding TIPS these days because their stated yields are negative. The 10-year TIPS, for example, currently is quoted with a yield of minus 0.65%. That headline yield triggers loss aversion among most of us, keeping all but the most fearless from even considering TIPS.

But retirees are being misled if they think of these negative yields in nominal terms. They instead are real yields—yields relative to inflation. So a better way to think of the current TIPS yields is that your return over the next 10 years will be 0.65% below whatever the CPI’s rate of growth will be. For example, if the CPI increases 10% annualized over the next decade, your return would be 9.35% annualized--guaranteed.""

And a link to it:
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