Fixed Income Security:UST INFL IDX 2.5%01/29INFL INDEX DUE 01/15/29 Face Value: $ 10,000.00 CUSIP: 912810PZ5 Coupon Freq.: Semi-Annual Callable: No Price: Limit at $ 102.16406 Moody's Rating: Aaa S & P Rating: N/A
Its not the actual rate hike that will increase the price of TIP. Its the expectation of a rate hike. Once people realize the Fed has no choice but to eventually raise rates, they will sell stocks AND they will sell bonds. TIPS and gold will be the only place to hide. I see this at $110 by EOY. Get in now, the price is very low. At the very least you can trade this thing from 100 to 102 and clip the coupon every time in the meantime! The bad news is - your groceries are getting more expensive as we speak.
I used to think that. I thought it might be near there by now 8 months ago. lol. I hope you are right. I think it will be higher than it is today with some nice dividends along the way, but watching this move I'm a little skeptical 110 is in the short future. Maybe. We will see.