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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (37044)3/22/2010 12:32:50 AM
From: Jurgis Bekepuris  Read Replies (2) | Respond to of 78519
 
Can anyone give me possible mechanisms to invest in inflation protected securities in my IRA?

You can buy TIP, but it only protects from (official measure of) inflation. It does not protect you from rising interest rates.

If you are assuming that "inflation" equals "increasing interest rates", that is not necessarily true.

To protect from rising interest rates (but not necessarily inflation), you would have to buy inverse of treasury yield (or short treasuries, which you can't do in IRA?). I don't think there is a cheap and good way to do this, but perhaps somebody else knows one.

Disclaimer: I have a position in TIP. I don't think it is very good investment right now.