The CPI-U inflation rate was 2.7% for 2009, 1.5% for 2010, and 3.0% for 2011. So the 10-year TIPS I bought at the end of 2008 that paid CPI-U inflation rate plus 2.125% look pretty good. Even the new 10-year TIPS I bought in 2011 at virtually zero % plus inflation now look pretty good. And 100% downside protection if deflation since no accumulated inflation to chew through first like with bonds held in TIP. So why buy any more TIP at these prices?
Yes - held in tax deferred account - an SDA that exists within my 401k which allows me to purchase any investment vehicle within my 401k - individual bonds, brokered CDs, any individual stock or any mutual fund availble on the entire market - anything but R/E and gold.