MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

What TIPS wont do - VTIPX

VintageFreakVintageFreak
edited June 2019 in Fund Discussions
!@#$^&* BONDS !@##$^&^&*

After watching What TIPS wont do, I'm wondering if my investment in VTIPX is completely misplaced. I thought I was diversifying, but now I'm not sure. It's also the only way I own bonds outright other than funds like RPHYX and my balanced holdings.

The reason I went for the short-term version few years back was under the assumption since interest rates have nowhere to go but up and inflation couldn't possibly stay so low for so long, I decided VTIPX would be a better investment than VIPSX and I could have some of my cash earn some income because Bank Savings Accounts weren't, and for the most part still don't yield much interest.

At this time Marcus gives 2.25% interest. WTF I am still doing holding (the bag?) with VTIPX, given it would seem Fed is done raising interest rates. Appreciate if people who hang out with 007 can shed some light, because right not I'm effing shaken, not stirred, not to mention VIPSX did not end up being dangerous as was expected by experts few years back and VTIPX was supposed to be the way to invest in inflation protection securities.

Comments

  • MikeMMikeM
    edited June 2019
    I actually took the bait on interest rate hikes back in late 2017 early 2018. Bought a TIPS ETF. Didn't stay in to long. Came to my senses and figured I would leave that decision to educated fund managers. I now believe rates will drop before they rise, especially if tariffs move us quicker into recession. Don't like to give advice, but I would put that TIP money elsewhere. But... what the hell do I know.
  • VintageFreakVintageFreak
    @MikeM. My real problem is every expert had been beating the drum for short term TIPs. Everyone was wrong, but who keeps notes? Will definitely lighten position immediately and put proceeds @ Marcus.
Sign In or Register to comment.