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In a post early this month, Jeremy Siegel said "a current buyer of a 10-year TIP is agreeing to receive just 91.6% of his initial investment in 2022, after inflation, with absolutey no interim yield." What he left out was that the measly interest earned is subject to federal taxes. Oh, boy! What a great deal!
This may be true with the assumption that a TIPs investor was going to buy and hold, yes? As with other bond styles, one must also consider the price appreciation; as long as a given bond sector maintains buyers vs sellers. Our house does not hold TIPs for the yield. And not unlike equity sectors; a given bond sector may be out of favor in coming months or years, dependent upon market, political and intervention (Fed) circumstances.
Comments
This may be true with the assumption that a TIPs investor was going to buy and hold, yes?
As with other bond styles, one must also consider the price appreciation; as long as a given bond sector maintains buyers vs sellers. Our house does not hold TIPs for the yield.
And not unlike equity sectors; a given bond sector may be out of favor in coming months or years, dependent upon market, political and intervention (Fed) circumstances.
Regards,
Catch