High Inflation Data Good News for I-Bonds & TIPS

Bob Brinker should have fun explaining how this high inflation data is good news for iBonds (Inflation Protected Bonds) and TIPS (Treasury Inflation Protected Securities) this weekend.

I posted two articles at the "Bob Brinker Fan Club Blog" worth reading. They are:

• Wednesday, April 16, 2008:
  I-Bond Rates To Soar on High Inflation Data
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• Tuesday, April 15, 2008
  March Inflation Up on Higher Energy and Food Costs

Vanguard's TIPS index fund (VIPSX) was up 11.59% in 2007 and is up 4.74% YTD in anticipation of these high inflation readings. With inflation expected to moderate, I don't expect to see this level of performance continue.

Disclaimer: I have a fairly large position in TIPS in both my personal account and some of the newsletter porfolios in "The Retirement Advisor" investment letter. I also recommend TIPS as part of a 3-item alternative to the easy to track "Total Bond Fund" in "Kirk Lindstrom's Investment Newsletter" where I may again recommend iBonds with these attractive rates.
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