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TIPs in the VP: Good for Low Inflation?

Posted: Thu Mar 13, 2014 9:50 am
by goodasgold
On pg. 61 of the PP book, Craig and MT state that gold works best during periods of high inflation (5% or more.) But several consecutive years of low inflation, when gold is not rising in price, could damage a portfolio's returns.

So what can minimize or prevent portfolio losses during periods of low inflation (1-4%)?

Could low inflation be the time when TIPs make sense for a Variable Portfolio?

Comments welcome.

Re: TIPs in the VP: Good for Low Inflation?

Posted: Fri Mar 06, 2020 7:16 pm
by yankees60
goodasgold wrote: Thu Mar 13, 2014 9:50 am On pg. 61 of the PP book, Craig and MT state that gold works best during periods of high inflation (5% or more.) But several consecutive years of low inflation, when gold is not rising in price, could damage a portfolio's returns.

So what can minimize or prevent portfolio losses during periods of low inflation (1-4%)?

Could low inflation be the time when TIPs make sense for a Variable Portfolio?

Comments welcome.
No one ever responded to this...but directly related to what I just asked regarding TIPS.

Vinny