No. of Recommendations: 6
With the average 20yr TIPS rate being 1.23% over the last 20yrs, now might seem to be a better than average time with rates above 2.2%?
Not bad reasoning, but are they? Over 2.2%?
I'm seeing quotes like 5-year at 1.36% and 10-year at 1.85%. Still a very respectable choice depending on what you need the portfolio to do.
Subtract however much value you think the US dollar might sink.
Fun number: the average S&P 500 firm is up 11.0% year to date counting dividends, measured in US dollars, before tax on dividends and suchlike. But a 100-euro banknote in your sock drawer would have beat that by 0.85%, no matter where you live, because the US dollar lost so much value relative to almost anything else around February-April. Pretty flat since then.
Jim
