Treasury Inflation-Protected Securities ( TIPS ) have long been a beacon for investors seeking shelter from the storm of inflation. They are a way for investors to attempt to keep up with the rising cost of goods. The interesting thing now is that TIPS are looking relatively weak, indicating that inflation protection is becoming less of a priority. This could have vast implications, as it could either signal disinflation or outright deflation ahead. TIPS, the securities designed to hedge against inflation, adjust their principal value in line with the Consumer Price Index ( CPI ). When CPI rises, so does the principal value of TIPS…
