Not exact matches
TIPS will typically outperform similar duration Treasury bonds when
inflation is
positive, and under - perform T - bonds
during deflation.
Given any
positive inflation at all
during the next few years, the real return on the S&P 500 in this decade through 2010 will probably be worse than the post-depression period, and about as bad as the 1970's.
However, the bank's statement offset the
positives by pointing to potential threats: weakening oil prices that drive down
inflation and the significant risks of high household debt accumulated
during years of low borrowing rates.
The goal of the S&P / BMV Mexico Target Risk Conservative Index is capital preservation and its 55 % allocation to
inflation - linked bonds is a testament to the
positive correlation against
inflation during the nine - year period (see Exhibit 2).