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A comment on Visualization of stock market performance over time, adjusted for inflation. Parent comment

Re:Visualization of stock market performance over time, adju... by lsc on Monday January 03, 2011 @10:01AM (#2063288)
my understanding is that you can buy government bonds indexed to certain measures of inflation. TIPS, I believe they are called. Obviously, they yield less than a regular bond, if inflation doesn't go up, but they do keep you in positive territory, if inflation does go up.
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Re:Visualization of stock market performance over time, adju... by smeatish on Monday January 03, 2011 @05:37PM (#2064973)
TIPS currently have negative real yields - you pay for the privilege of hedging against inflation. When inflation is expected, TIPS do not necessarily guarantee positive real returns.

http://www.bloomberg.com/news/2010-10-25/treasury-draws-nega...

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Re:Visualization of stock market performance over time, adju... by vanschelven on Monday January 03, 2011 @10:33AM (#2063384)
Indeed. However, TIPS also provide a nice counterpoint against mjs' claim that "If you're getting less than 3% out, stocks aren't worth it." In 2010 TIPS did not necessarily keep you in positive territory.
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