Bingo!Kevin M wrote: ↑Sun Mar 10, 2024 9:55 amRight. This is why long-term TIPS are a good deal now: the real yield is about 2%, so why take the risk of unexpected inflation with nominal bonds when you can get the long-term average real yield with TIPS without that risk?nisiprius wrote: ↑Sat Mar 09, 2024 3:26 pm From the average returns of stocks, bonds, and Treasury bills (i.e. "cash"), over the full time period 1900-2021, have all kept up with inflation. Source: Credit Suisse Global Investment Returns Yearbook, 2022 summary edition. As you see, bonds had a real return--i.e. beat inflation--by 2% per year.
Those are long-term bonds.
With the 30-year TIP at 2.0% real yield, that is heckuva deal.