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T. Rowe Price U.S. Limited Duration TIPS Index Fund in registration
Once the economy picks back up inflation may as well. We are already seeing price inflation in real estate prices as a result of low interest rates (fed policy). Short duration TIPS seems like a way to hedge Inflation for the cash-like part of one's portfolio. Short Term TIPS have performed very well this year. VTIPX is up 7.45% YTD. VTIPX had a Max DD of about 1.57% that began in March and ended in May. In it's short history, Nov 2012, most of its gains have occurred in 2020.
The link, while it comes up, did take a little time to load. When I clicked the link the initial part showed up, but it continued to load for about seven seconds.
We are already seeing price inflation in real estate prices as a result of low interest rates (fed policy).
It doesn't look like that's been the case over the past three years. Though what's missing from the graph below is median square footage. The multi-decade trend has been toward larger houses, but I believe the trend over the past few years has been slightly downward. Factor that in and you might see a bit of inflation per square foot.
Real estate prices are incorporated into the CPI only indirectly, to the extent that they affect the cost of shelter:
Housing units are not in the CPI market basket. Like most other economic series, the CPI views housing units as capital (or investment) goods and not as consumption items. Spending to purchase and improve houses and other housing units is investment and not consumption. Shelter, the service the housing units provide, is the relevant consumption item for the CPI. The cost of shelter for renter-occupied housing is rent. For an owner-occupied unit, the cost of shelter is the implicit rent that owner occupants would have to pay if they were renting their homes.
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Derf
The link, while it comes up, did take a little time to load. When I clicked the link the initial part showed up, but it continued to load for about seven seconds.
It doesn't look like that's been the case over the past three years. Though what's missing from the graph below is median square footage. The multi-decade trend has been toward larger houses, but I believe the trend over the past few years has been slightly downward. Factor that in and you might see a bit of inflation per square foot.
https://fred.stlouisfed.org/graph/fredgraph.png?g=ubtE
Obviously housing trends vary widely from region to region, so YMMV.
Also, "The CPI also does not include investment items, such as stocks, bonds, real estate ..."
https://www.bls.gov/cpi/questions-and-answers.htm#Question_10
Real estate prices are incorporated into the CPI only indirectly, to the extent that they affect the cost of shelter: https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.pdf