On Thursday February 2024, the 30 year TIPS treasury auction will take place and we are picking up some of these bonds for the long haul. We think this investment is a good hedge against a possible inflationary spiral we think may come because of the demographic crisis, huge $34 trillion treasury debt, and the ever growing handout of money to people on social security and subsidized medicare.
Our TIPS bond strategy is simple, we will buy 30 year TIPS this week. The 10 year TIPS in March and the 5 Year TIPS in April to diversify and spread time risk assuming the Fed doesn’t execute any aggressive moves to interest rate policy, which we will be watching with keen eyes.
If the Fed does cut or even raise rates over the next FOMC meetings then we reserve the right to hold off on purchases until some future point in time. We don’t need to rush into buying bonds and we continue to buy short term T-Bills in the interim.
If you’d like to learn more about this topic, we recommend Jennifer Lammer’s 30 Year TIPS video below or visit the TIPSwatch blog.