Thinking about your statement in the context of the plethora of BH posts on TIPS ladders and the faith expressed by these investors in that approach to protect them from significant inflation.
The issue is people treating TIPS as reliable inflation protection when the fundamentals of the instrument are dubious for that purpose. For mild inflation TIPS are a nice variant on treasuries, removing some of the inflation risk. But I would not want to rely on them for more serious inflation protection because they only represent a future promise to pay, not a claim on real assets that are valued independent of the money supply.
Statistics: Posted by AlwaysLearningMore — Tue May 28, 2024 9:15 pm