TIPS on Expected Inflation: A Unique Dividends Buying Opportunity

Interest rates have three major parts. The first is what is known as the real interest rate, or how much the market is willing to pay you to defer your consumption of goods and services into the future. The second part is an expected rate of inflation. After all, if you want to defer buying a car today so you can buy a better car in the future, it will not help you much if you earn 5% per year on your money if the price of cars goes up at 10% per year. The final part is to compensate you for the risk that you will not get paid back.... Read more