No More TIP, The Paradox Of Break-Even Inflation

  • Break-even inflation is high, which makes it less attractive to set up positions in TIP, an ETF with maturities around 7 years. Even though TIP has withstood downward pressure better over the past year than non-indexed ETFs like TLH, which have durations of 10–20 years. I don't think the macro data suggest a potential inflation spike, which could make it more advantageous to shift toward other fixed income solutions.