The Trouble with TIPS
Inflation expectations in the U.S. have risen over the past few months, and, as a result, investors have begun evaluating how to position their portfolios for an inflationary environment. TIPS are one of the most popular ways for investors to hedge against the threat of inflation; however, TIPS simply neutralize the impact of inflation, rather than take advantage of it to enhance returns.
As a result, there are a number of better options that investors should consider in an effort to protect their portfolios in a rising inflation and interest rate environment. Click here to read more about the trouble with TIPS from J.P. Morgan Asset Management.