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iShares TIPS Bond Message Board

  • jrw4562 jrw4562 Aug 15, 2011 12:04 PM Flag

    Tips vs Treasuries

    I keep hearing from all the talking heads on CNBC that now is not the time to get into Treasuries. What about Tips? Is now a good time to go long Tips. Also, is Tips a product that you can just buy and hold long term? Thank you in advance.

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    • "Is now a good time to go long Tips. Also, is Tips a product that you can just buy and hold long term?"

      TIPS is intended to be a product that you buy & hold long-term. If your objective is to speculate on price moves, now is a terrible time to buy TIPS. But if you are looking to hedge inflation risk, you might consider adding some TIPS.

      I have some other holdings that are particularly sensitive to inflation. I offset (not eliminate) some of that risk with TIPS. I usually do the same thing with GLD & SLV, but I took profit & won't get back in until there is a correction.

      Corrections in TIPS generally aren't big enough to bother taking profit. When TIPS hit bottom in 2008, that was a very short dip, not a correction. They went down like everything else - just not as much.

    • Bought TIPS at $105 and now have a stop loss at $115. They have been a good investment so far and the dividend still beats short term treasurys.

 
TIP
115.04+0.02(+0.02%)Apr 27 4:00 PMEDT