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To Survive Disasters, You Need Smiles (guest: Steve Hou)

The Market Huddle

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How to Hed Against Inflation With Nominal Bonds

tips is a very popular instrument for hedging against inflation because, after all, it has the word inflation in the name. So everyone wants to hold tips to hedge against inflation. But unfortunately, as you, as you mentioned,Tips isn't just inflation. It's a bond plus inflation and that bond portion can get hurt. And so if you kind of kind of look at the difference between tips and a regular bond, you did a lot better in tips. This last round or at least most of it than you did in a normal bond,. That's right.

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