TIP is at serious risk of being dragged down by oil (deflationary). Note that IEF (TIP's non-inflation protected counterpart) was up today.
I'm still up 22% on the 30-year TIPS bond that I bought in February. That's most likely too far and too fast. It wouldn't surprise me if if fell all the way back down to the price I bought it at should oil continue to fall.
I'm holding it until maturity just the same. What's my alternative? Earning 0.01% in three month treasury bills? Hindsight might show that it was a great idea, but it sure would require excellent timing.
I'd rather own long-term TIPS to meet my long-term needs than risk owning short-term treasury bills to meet my long-term needs. That's just an opinion of course.
Yes the "what's the alternative" argument ultimately caused me to not sell yesterday. I think big gains will be made betting on commodities long term, but for income investments, what are you going to do? Selling was the hard thing to do yesterday as everything else was tanking, but it ended up, PERHAP, being the right move. I am left mainly with 5-6 years on most of mine and they are probably overbought to very overbought at this level. I think there is still a chance for further price gains down the road, but I'm not that confident personally. What is the alternative though? Hopefully paper losses will be fairly tame if it pulls back to a more attractive yield level.