what are your thoughts about Inflation protected bond ?

[troubled soul]

Is it good to invest in Inflation protected bond etf like (Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP))?
In today's market condition ?
And as overall ?
if market is overvalued or undervalued ??

It is good investment to keep in your portfolio for lifetime??
Just buy and Forget ?
And receive Dividend ???


Thanks

 

[Martin Everson]

If those funds just hold long dated US Gov TIPS I don't see no issues. It is a good idea for the long term. However you be losing money each day over the long term unless inflation becomes a government "recognized" thing for TIPS to work. Governments however are not registering inflation like they used to so your rent could double, food price triple, petrol costs double and they would announce inflation is holding steady at 2%....lol.

At some point inflation will may go rampant. Now lets imagine it goes to 10% like it has in the past. I don't see US gov honoring a TIP without having real issues. That means 10yr US Treasury bond yields will be at over 10% potentially .

 

[369]

real inflation is always way higher than offical inflation................so you still would be losing