TIP - Inflation Protected Treasuries

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Keynes's picture
User offline. Last seen 8 years 6 days ago. Offline
Joined: 02/27/2009

I've been working in Treasuries, and I feel like I have missed the boat on TIP.  I had a position in the upper 90s, but sold it at a profit near 100.  I haven't decided to buy back in but I need a hedge against my TLT position and GLD always makes me nervous. 

What I find particularly odd however, is that on a day like today in which stock prices would suggest that people are hoping for a recovery sooner than later, that TIP would be down.  If you believe a recovery is in the offing, inflation has to follow on it's heels right?  With the amount of money that's been printed, I'm highly skeptical that the Fed is going to have the discipline to remove liquidity in the face of any signs of recovery.  Monetary policy has to lag, so why wouldn't TIP be a good buy for a recovery?