iShares Barclays TIPS Bond Message Board
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TIPS OVERPRICED 20% HERE
Cash is KING!
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Klumps is a troll. look on the PNC message board!
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Klumps,
If you knew, then clearly you followed your own advice and made a ton.
BTW, your comparative chart is significantly misleading....unless you meant it to be. The comparative does not take into account the distributions which is the mammoth proportion of the accumulated and compound income from TIP. The only thing you see is the market rise in the ETF over that time... Try pumping into that chart that additional COMPOUNDED distribution/return.
You might be more than surprised to see the results....OH MY!!!!
Or maybe not.
Good Investing, Ken -
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You should have told us ahead of time. We would all be rich now.
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- 2 Replies to nano_klumps
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Klumps,
This is not rocket science in investing here. A pot of money is only worth what the pot of money is valued at on any given day.
I contend that 121.50 or thereabouts is a fair price. This is the Net Asset value (of the pot of money). Please see NAV under "profile" of this page.
http://us.ishares.com/product_info/fund/overview/TIP.htm?fundSearch=true&qt=TIP
If you are going to wait until TIP gets down to the price it was in 2009....you had better hope that cash is king...because you won't be investing in TIPS any time soon. Oh and BTW, your cash won't be worth a cup of sand by then anyway....at least I will have been getting and spending the monthly distribution along the way.
Good Investing (or in your case sitting and waiting), Ken -
Please explain your reasoning. 12/2009 is the low and was a bargain looking back, but why is that the "fair" value?
The way I see things is that TIPS are to protect against inflation. In 12/2009 we were worried about deflation, so TIPS took a hit. If we do get inflation to return, the prices should increase to reflect the inflation. With corn prices up, this affects gasoline and food for the next 6/12 months and should also add to inflation and in turn this would also mean an increase in the TIPS value.
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