What's the case for buying TIPS right now ? They are pricing deflation I hear on CNBC, what does that mean for a long term investor? And how do you value them vs inflation and T bonds ?
Yes, right now if we get any inflation at all, you make more on TIPS then you do on Treasuries (usually you make LESS). The play here if you have the capital to do it is long TIPS and short Treasuries, make that vig via inflation.