Dean Roland Russell – Treasury Inflation Protected Securities (TIPS)

Marc Roland of Dean Roland Russell (DRR Wealth) was recently quoted in the Wall Street Journal.  The article, “Advisors Dump TIPS as Inflation Threat Wanes,” written by Daisy Maxie discusses Treasury Inflation Protected Securities (TIPS) and why advisors are selling these investments.  We purchased TIPS several years ago as part of our core bond strategy with the idea that this would be a long-term holding.  We believe that the future will be an inflationary environment, but the question remains when and how quickly.  With the expectation of higher inflation, TIPS appreciated much quicker than we expected.  Our analysis showed that, after all of the appreciation, the real return on TIPS would more than likely be negative going forward.  Ultimately we sold them much sooner than we thought that we would.  Regardless of what we believe, all of our investments and strategies must be continually re-evaluated.

To read the article in its entirety –  Wall Street Journal Article