The financial media tells about how TIPS funds can legitimately inflate yields. It’s easy to be hoodwinked into believing you are getting more than you are, while enjoying benefits of inflation protection.
I have never been a fan of TIPS. I have always explained its shortcomings on the return you get and its tax bites. And how you can instead avoid inflation’s effect on fixed income investments with proper use of duration principles.
The problem: Most investors and those in the financial media are in the dark about the use of duration principles. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets)
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