Yes, inflation is higher than reported in the CPI. The question is whether you get a higher rate of return on the TIPS than on Tbills/Tbonds. With interest rates edging up, it’s more attractive now than it was a couple years ago. I think it’s better to buy a TIPS which loses 1% annually to inflation, than to be in the money market which loses 60% because the underlying FNM bonds lost value, or to be in the stock market as it undergoes a 15% correction. That’s my general thinking. Am I missing anything?
