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iShares TIPS Bond Message Board

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  • jshaef1 jshaef1 Nov 9, 2012 8:34 AM Flag

    New all-time high

    Good going guys--just 22 ticks away from a negative real interest rate on the 30 year TIP (last time checked)--a magnificent monument to Uncle Ben's prudent management of our lives. We are surely blessed :).

    Don't tell me TIP doesn't have a maturity that long for its holdings. It is just a cherry on the bountiful hocus pocus sundae that Bennie has provided us. In the spirit of Charles Ponzi I salute him and the governments around the world who have created such a monstrosity without fear. The outflow from equity funds exceeds anything we have seen in this century and the inflow into bond funds is the same. As Irving Fisher once said 'interest rates act as a link between income value and capital value." Since interest rates are zero or lower, I wonder what that could mean?

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    • No congratulations for me -- I sold almost all my TIP when the price reached 119 because I thought that price was unsustainable. Shows how much I know. I used to have 25% of my portfolio in TIP and STPZ; now I'm at less than 10%, mostly in STPZ. I want to increase my holdings again, but I don't want to buy more when real rates are zero or negative. So I wait here patiently while Uncle Bennie turns the screws.

      • 1 Reply to lo_octane
      • Lo--i believe most people are aware of the bubble status of many bond funds. But the excuses for investing more are:
        "there's nowhere else to go" or
        "equities are too volatile" or
        "safe time deposits are paying close to zero"
        I suppose TIP has a kicker in that it offers an inflation indexed return, cold comfort when we know who controls the index.

111.39-0.31(-0.28%)Feb 5 4:00 PMEST