Why Now May Be The Time For TIPS

Why Now May Be The Time For TIPS by Matthew Tucker, CFA – BlackRock

Matt Tucker explores the recently-resurfaced inflation conversation and discusses why now may be the time to revisit Treasury Inflation Protected Securities (TIPS).

I’m not sure if you noticed, but last month marked a bit of a milestone: The Labor Department noted that its Consumer Price Index, excluding food and energy, increased 0.3 percent in January, after a 0.2 percent gain in December. That doesn’t sound like much, but consider the context: It’s the most we’ve seen since August 2011. Indeed, inflation has been stubbornly low in recent years, but the Fed has continued to hint that inflation is just around the corner, and the market...