Re: A question on TIPS
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Principle is adjusted down if deflation.
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there is a limit though...you can't owe money (i.e. if deflation occurs for the life of the bond, you are paid your initial principal)
Barron
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Yeah, this was the main point of my question. It's *awkward* that one loses money investing in US bonds.
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yea you don't owe money.
but deflation is pretty unlikely to happen.
TIPS are far underutilized though as i've mentioned previously.
Barron
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