FYI: TIPS and TIPS funds have two primary purposes in an investment portfolio. First, they act as an insurance policy against inflation, which clearly is hard to predict. Second, they can generate decent returns.
As an insurance policy, TIPS funds can be used as a hedge against rising prices because the underlying TIPS holdings are guaranteed to pay a return above the rate of inflation. As a return generator, TIPS are best when inflation is heating up.
Therefore, the best time to buy TIPS funds may be now. Here’s why:
Regards,
Ted
http://investorplace.com/2014/10/inflation-tips-funds/print
