- All the pieces are in place to support an increase in inflation rates in 2021.
- Strong consumer spending, record-low interest rates, government stimulus, and a potential global recovery all support higher consumer prices.
- Housing and food prices are already rising at a rapid rate even though it's yet to show up in other consumer goods and services.
- Net TIPS fund flows show a lot of money already moving into these products.
- I prefer lower risk short-term TIPS funds in order to provide inflation risk while controlling volatility.
For further details see:
VTIP: Investors Are Layering On Inflation Protection, And You Should Too