Tag Archives: TIPS

Tuition Inflation: Indexing the Rising Cost of College

Costs associated with college tuition and fees have far outpaced general U.S. inflation, so for individuals saving for college, the ability to accurately measure and potentially keep pace with tuition inflation is important.  Recently, in this video, S&P Dow Jones Indices joined with Enduring Investments to discuss the newly launched S&P Target Tuition Inflation Index.  Below is a summary of the questions and Read more […]

TIPS Improve Income Stability For Lifestyle Goals

Commodities are a direct way to protect against inflation since they are the natural resources that build society.  The same food and energy that is in CPI (Consumer Price Index from the Bureau of Labor Statistics,) is in the commodity indices like the S&P GSCI and DJCI, and more energy has provided more inflation protection since energy is Read more […]

How to Build a TIPS Ladder Portfolio for Millennials

In his January blog post entitled “Try a TIPS Mixer in Your Equities Cocktail,” Phillip Murphy described the potential benefits of including Treasury Inflation-Protected Securities (TIPS) in one’s portfolio.  In this blog aimed at Millennials, I would like to propose an easy way to build up a 30-year TIPS portfolio for retirement. Let us assume Read more […]

Try a TIPS Mixer in Your Equities Cocktail

As product manager of the S&P STRIDE Indices, I sometimes find myself extolling the virtues of Treasury Inflation-Protected Securities (TIPS), which I believe are an underappreciated asset class.  When inflation is relatively tame, people often ask why they should think about TIPS.  The answer is that TIPS don’t hedge expected inflation—that’s already priced in.  TIPS Read more […]

Let Me Count The Ways To Get To 8%

Recently I visited a few pension plans and it amazes me how the policy views on risk differ to meet seemingly similar return goals. The National Association of State Retirement Administrators (NASRA) reported earlier this year that of 126 major state and municipal systems, 32 had set an assumed rate of return between 7.5% and 8%, 37 Read more […]

Less Risk Meant Higher Returns for August

In August the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Index dropped by 23 basis points from 2.56% to 2.33% where it closed out the month.  Holding the 10-year alone returned 2.19% for the month and has returned 8.42% year-to-date on a total rate of return basis. TIPS or Treasury Inflation Protection Securities Read more […]

A Renewed Interest in High Yield Bonds

High Yield Bond Market – Outlook has changed to the positive, away from the recent stories of overvaluation and fund withdrawals. The S&P U.S. Issued High Yield Corporate Bond Index returned 1% last week and a 0.43% the week before to recover the loss incurred the last week of July (-1.38%).  Year-to-date the index is Read more […]

Back When I Was A Kid…

On my daily commute to New York City via New Jersey Transit today I overheard a conversation on the train that started with “Back when I was a kid”.  Though the start of the conversation had grabbed my attention, the rest became a blur as the statement had triggered memories that related to the current Read more […]

Rising Inflation? That’s For Time To Decide

With the volume of news headlines and the speed of information, tid bits of news, some with the potential to be significant, can naturally get lost in the shuffle. One such issue that might have some significance in the coming weeks is the president of the St. Louis Federal Reserve, James Bullard saying that there Read more […]