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by seleniumBubbles 2237 days ago
The “inflation protection” provided by TIPS relies on the good-faith reporting of the same government which creates and benefits from the inflation.

If inflation as measured by the CPI picks up beyond the single-digit numbers of normal years, do you really expect TIPS to remain honestly valued? Even if that means they outperform all other assets “risk free?”

1 comments

Perfect hedges are impossible.

TIPS are a far better hedge for inflation than Bitcoin.