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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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"TIP" toeing through the world of bonds.....

Many sectors/funds slip past our view, in our ever changing world of investing. Most of us are too busy with family and making a monetary living to watch everything, all of the time.

Since late February of this year, we returned some of our monies back into direct investments in TIPs funds.
Yes, there are those who poo-poo such areas of investments.
The argument against, generally being that such investments have such low yields; why in the world would anyone want to invest.
Not unlike equity investing, we look at these from a price point. Yield from bonds, not unlike a dividend from an equity is not usually our focus with a fund holding. If both price and yield work together to some extent; well, all the better, eh?
As to TIPs in general; several areas may affect their value or lack of; being a safe haven, cash equivalent holdings for some funds, pension funds and the persception of inflation.
Generally, if conditions are favorable; TIPs holdings are our "cash" for parking monies.
Lastly, with active managed TIPs funds; one will find a variety of holdings. As seen in the below list; duration of holdings plays an important role, and that many TIPs funds will not be 100% in this bond area; but will also hold other investment grade bond types.

Well, anyway; just a few blips about this area.



A sampling..... YTD numbers, as of Aug 5

---LTPZ, + 17%
---STPZ, + 1.6%
---TIPZ, + 6.7%
---TIP, + 6.1%
---FINPX, + 5.9%
---ACITX, + 5.6%
---BPRIX, + 6%


Note: TIP 5 year annualized = 5.6%

Take care,
Catch

Comments

  • Hi Catch,

    Nice to see you posting again.

    Old_Skeet
  • How about this TIP ? If you keep this up, you'll become our TIPS expert !
    Happy Labor Day,
    Ted

    Tip Toe Through The Tulips: Tiny Tim:
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