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iShares TIPS Bond Message Board

  • markm0722 markm0722 Mar 2, 2011 9:15 PM Flag

    CPG-U

    Here's a chart I created today for your consideration.

    Check out the long-term trend in unleaded gasoline prices vs. the long-term trend in the consumer price index. Much to the dismay of the consumer price index conspiracy theorists, they track each other extremely well.

    http://illusionofprosperity.blogspot.com/2011/03/alternate-inflation-index-cpg-u.html

    I'm calling the CPG-U (Cents Per Gallon - Unleaded) an alternate long-term inflation measure and will continue to track it going forward on my blog.

    I think this offers additional evidence that we can mostly trust the CPI-U over the long-term and that TIPS are therefore a relatively reasonable investment if one expects higher inflation.

    "TIPS [Treasury Inflation Protected Securities] are not a bad investment for people worried about inflation heating up, which we're seeing signs of." - Warren Buffett (2004)

 
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