As readers of my books and blog posts know, I’m a big fan of Treasury inflation-protected securities (TIPS). I recommend investors consider them for a prominent role in their bond portfolios. In recent years, I’ve received numerous inquiries from investors about the wisdom of purchasing TIPS when yields have been so low.
Specifically, I’ve been asked: “Why should I buy TIPS with a negative real yield to maturity?” Given the frequency with which I’ve addressed that question, I thought it would be worthwhile sharing my response.
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