No. of Recommendations: 1
<At the end of last year the bond market was expecting to see roughly five years of deflation, followed by 5 years of modest inflation, adding up to almost a zero net change in the price level over the subsequent 10 years.>

That was a fantastic opportunity to lock in high fixed rates on TIPS, as the TIPS fixed rate temporarily exceeded the yield of the conventional Treasury. We discussed that on this board at the time.

DH and I took advantage of this to buy a bunch. I don't think we will see this opportunity again soon, if ever.

I still think the market is underestimating the long term inflation rate. But the TIPS fixed rate is no longer attractive.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.