With tariffs ramping up, this investment option can provide protection against inflation
Publishing timestamp: 2025-02-21 13:47:37
Summary
The threat of tariffs on imports is leading some investors to consider increasing their exposure to Treasury inflation-protected securities (TIPS) to hedge against inflation. TIPS are bonds issued by the U.S. Treasury that are designed to protect against rising consumer prices. While TIPS can be a valuable tool in an inflationary environment, they are not immune from losses, especially if interest rates rise at the same time as inflation. It is recommended to combine TIPS with other assets like dividend-paying stocks and laddered CDs for a diversified portfolio.
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Tickers: US10Y,
Keywords: bonds, winnie sun, u.s. treasury bonds, inflation, personal saving, u.s. economy, business news, interest rates, investment strategy, economy, u.s. 10 year treasury,
Source: https://www.cnbc.com/2025/02/21/tips-can-provide-an-investor-protection-against-inflation.html