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Inflation Causes TIPS to Drop


My Bear Market Investing Guide only $99 - Don't Miss Out! What is the best investment that one can make when inflation is happening? Well, many people think that the answer to that question is, “TIPS” (Treasury, inflation protected securities). Because while a regular Treasury is a bond that pays an interest rate and it's usually like right now below the rate of inflation, that means that you're getting paid a negative real return on your money. Something like a tip, a treasury inflation protected security is supposed to pay you a positive real rate because it's protected from inflation. However, this year, TIPS have had some lackluster performance, to say the least. And we're going to dive into why. Timecodes 0:00 Video Overview 0:42 Intro 0:49 Bad Performance of TIPS 1:56 Annual Increase in TIPS Still Low 4:49 Getting Involved with ‘I’ Bonds 5:30 Outro Upcoming Events I'm Speaking At: Pacific Bitcoin (Promo Code HERESY) My Courses and Guides🍎🍎 💵Bulletproof Your Portfolio 🔑Ultimate Guide on How to Buy Gold 📝Weekly Newsletter 📈Advanced Trading with my good friend Gareth Soloway Gold and Silver🔥🔥 💰Get Paid Interest IN Gold ON Your Gold 📱Buy Vaulted Gold 🔒OneGold Gold/Silver/Platinum (Code Heresy1x) 🪙Gold/Silver IRA (Get $100 of BTC) Bitcoin 💎💎 🔐Best Bitcoin IRA (Get $100 of BTC) 🦢Best Place to Buy Bitcoin (Get $10 of BTC) 📟Best Bitcoin Wallet Stocks💰💰 💹Best charts (Get $30) 📈Best all-around 📊Best auto investing Real Estate 🚀🚀 🏠Single-Family Rentals 🏡 Invest in High-Yield RE Debt 🏘RE Portfolio Investing Misc ⚖️⚖️ 📖My Bookshelf ☕️Merch 🤝Join my private community on Locals I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial. #TIPS #Inflation...(read more)



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Treasury Inflation-Protected Securities, commonly known as TIPS, are US Treasury bonds designed to protect investors from inflation. These securities adjust their principal value with changes in the Consumer Price Index (CPI), which measures the average price of goods and services consumed by households. TIPS work on the premise that an investor would not be able to purchase the same amount of goods and services with the same amount of money in the future due to inflation. They are meant to provide an inflation hedge and protect the investor's purchasing power. When inflation is on the rise, TIPS should perform well, and investors should flock to their safety to safeguard their investments. However, recently, TIPS dipped on inflation, and this development has been significant and surprising. The dip is significant because it is an indication of investor sentiment towards inflation. TIPS have been the go-to security for investors looking to hedge against inflation for years. Inflation expectations have been rising globally due to a variety of factors, including a robust economic recovery, central bank stimulus measures, and supply chain disruptions. However, despite these factors, TIPS yields have fallen or remained steady over recent months. This development is a clear indication that investors are not overly concerned about inflation's effect on their investments. There are several reasons why TIPS have dipped on inflation. Firstly, the Federal Reserve has been clear that it deems any inflation to be transitory. This stance by the Fed is based on the theory that the current spike in prices is due to temporary factors such as supply chain disruptions and pent-up demand as the economy reopens from the pandemic. The Fed has stated that inflation will return to pre-pandemic levels once these factors normalize. Secondly, investors believe that there may be a potential slowdown in the economic recovery, which could reduce inflationary pressures. This sentiment may be because of rising COVID-19 cases worldwide, leading to renewed lockdowns and restrictions, which could slow down economic growth. Lastly, investors may be pricing in the possibility of the Fed tightening monetary policy in the future to control inflation. The Fed could potentially raise interest rates or taper its asset purchase program, which would reduce the amount of cash flowing in the economy and put downward pressure on inflation. In conclusion, TIPS dipping on inflation is a significant development that indicates investor sentiment towards inflation. It is an indication that investors are not overly concerned about inflation and believe it to be transitory. However, the situation is fluid and could change at any time, and investors need to monitor their investments closely. https://inflationprotection.org/inflation-causes-tips-to-drop/?feed_id=83077&_unique_id=6426698bd9601 #Inflation #Retirement #GoldIRA #Wealth #Investing #annual #Bonds #brown #dipped #financial #heresy #ibonds #Increase #inflation #inflationprotectedassets #inflationprotectedsecurities #inflationprotectionstrategy #interest #joseph #money #on #Protected #rates #securities #security #TheFed #tips #Treasury #wealth #wealthprotection #why #InflationHedge #annual #Bonds #brown #dipped #financial #heresy #ibonds #Increase #inflation #inflationprotectedassets #inflationprotectedsecurities #inflationprotectionstrategy #interest #joseph #money #on #Protected #rates #securities #security #TheFed #tips #Treasury #wealth #wealthprotection #why

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