Recently, our firm's Chief Investment Officer, Scott Cameron, was quoted in a piece on CNBC, "Inflation risk low, investors shun TIPS", regarding investors leaving Treasury Inflation Protected Securities (TIPS) during our current low-inflation environment.
In 2013 investors were left perplexed by a year where the Barclays US TIPS Index fell by more than 8.5%, while the S&P 500 Index appreciated by more than 30%. 2013 was the perfect storm for TIPS with an upward shift in the yield curve that was not related to core inflation occurring simultaneous to a global divestiture by many in the TIPS markets.
For a more in-depth look at the impact of rising interest rates on TIPS, click the button below to read Scott’s white paper.
