Brown also believes that inflation won’t be coming back any time soon as the globe undergoes deleveraging. Other deflationary forces include import prices are dropping and labor costs have stayed flat.
It’s important to remember that TIPS can still be hurt by rising yields like regular Treasury bonds. On Monday, the yield on the 10-year Treasury note rose above 2% for the first time since April 2012.
iShares Barclays Treasury Inflation Protected Securities Bond Fund
For more information on Treasury Inflation Protected Securities, visit our TIPS category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own TIP.