iShares Barclays TIPS Bond Fund (ETF) (AMEX:TIP)

http://scottsinvestments.blogspot.com/
At the end of September 30th, the top 3 ETF in the basket of 25 for the 3/20/20 strategy are:
IEF iShares Barclays 7-10 Yr Treasury (7-8yr)
LQD iShares iBoxx Invest Grade Bond (7-8yr)
SHY Barclays Low Duration Treasury (2-yr)
Therefore, the strategy is purchasing LQD, TIP, and SHY for October.

Too risky, equity yields higher at this time.

Put your hand up on my TIP, when I dip you dip we dip

Covestor Model Manager System Research sold TIP in his Diversified Bond Covestor Model ( http://covestor.com/System-Research )

I simply do not see inflation coming in the next year or so for this to be viable. Large government deficits are met by periods of deflation, if anything. Goldman Sachs predicts modest (.5%) inflation through 2013, and GDP growth of around 3.4 to 3.8% in 2011. Time to become a bull. If deficits are what you are scared about, remember there are far worse things that can happen to an economy. Compared to high unemployment, inflation is a much lesser evil.

inflation is coming

I believe the government purposely underreports inflation (clear conflict of interest). So though these bonds may outperform other treasures, over the long run they will underperform the overall market.

Still think this is a bear market Rally!!

The many big reasons why the economic recovery will take two years or more might mean the big rise in stocks since early March won't hold. TIP is insurance against big losses if this happens.

safety

Inflation will increase dramatically once the economy picks up steam

Inflation protection ETF. It's a bet that we'll see inflation in the next five years.

If you believe we are not inevitably headed into a second Great Depression, then your estimate of the concomitant inflation expectations for over the next 10 years is probably higher than the market is estimating, and you might conclude that TIPs are probably priced way too low right now.

Some mere few have started to worry out loud about inflation being an issue RIGHT NOW, including me. The fact that inflation concerns are being raised mostly by the nearly extinct dinosaur-economists of the Chicago School should not confuse us into thinking they may be entirely wrong. They may be wrong about the timing of when inflation will come, and as a result this pick may be way too early, but I like the 6% return these bonds are currently paying, and I can wait.

Basically, I'm betting that inflation-complacency has created a distortion in the market's pricing for TIPs. I understand how pushing inflation to the back burner was rational because the devil that has been the bigger threat was the deflationary spiral, but if that sentiment around inflation turns around, this EFT will pop.

So, either because bad inflation is closer than we think, or because bonds are under priced for the given real inflation right now, I expect these to hold their value and maybe pop with increased demand for the underlying bonds.

I am buying TIPs for my real portfolio, and watching this in CAPS!

A hedge against my overall bear outlook for T-bills in general, at least short term.
$100.62 0.12 (+0.12%)
4/23/2009 12:00 PM
iShares Lehman TIPS Bond (ETF) (TIP)

bond play

how can i invest in government tips directly. These guys just copy it or something and is not the real tips bonds.

INFLATION!

THis is an interest play only

I expect the FED will lower the FED funds interest rate due to the recession. There should also be some upside due to safe haven buying. The current interest rate paid is 7.63% when the price is $95.86. This is an attractive rate for what should be a safe investment.