Opinion on  iShares Lehman TIPS Bond Fund (TIP)     Sector: Financial  >  Industry: Misc. Financial Services
Broke one year uptrend

The recent surge in volume is probably result of inflation scare spreading among the retail investors. TIP can spend next six months burning investors money (zero yield). I think that 4% inflation rate is priced in and this is lot of inflation for the US.


Loans in the US are mainly nominal and the financial system is not hedged against inflation. Anything above 3-3.5% inflation should (if the Fed still remembers what it exists for) bring automatic fire from the Fed. And Fed is likely overshoot.