Vanguard Inflation Protected Securities (VIPSX)

Discussion of the Bond portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Vanguard Inflation Protected Securities (VIPSX)

Post by MachineGhost »

Why is VIPSX hitting 52-week highs during a stock market correction and potential double dip?  Anyone got a logical explanation?
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3483
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Vanguard Inflation Protected Securities (VIPSX)

Post by Ad Orientem »

MachineGhost wrote: Why is VIPSX hitting 52-week highs during a stock market correction and potential double dip?  Anyone got a logical explanation?
Bonds, especially Treasury securities tend to rise during periods of economic uncertainty. And many investors suspect that if we do fall into another recession that this will spur more QE from the FED. TIPS will likely rise in that scenario. People are looking for safety with a yield. And many know that inflation is a real risk down the road.

Obviously I am not a fan of TIPS. But to each their own.
Trumpism is not a philosophy or a movement. It's a cult.
Post Reply