TIPS (Treasury Inflation Protected Securities) are trading more cheaply than they have for much of their recent history. Investors who own them can lock in CPI (consumer price index or inflation) plus more than 2% in some cases. You have to hold a TIPS bond to maturity to realize the real yield it carries when you buy it. TIPS have deflation risk. Also, they are better held in tax-advantaged accounts such as IRAs.
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