Are Treasury Inflation Protected Securities (TIPS) a good investment now?
On one hand, everyone is expecting a high amount of inflation as the Fed prints more money. TIPS are bound to the CPI which rises with inflation, although not as much as actual inflation.
On the other hand, I have heard concerns about the safety of Treasury bills because of the financial straits the US is in. See http://www.safehaven.com/article-4784.htm
Over the next year or two, should short-term investors seeking to preserve existing wealth (i.e., purchasing power) invest in TIPS or avoid them out of fear that US government debt instruments are no longer a safe place to park your dollars?
Georgianne









