Inflation ETF Breaking Out
The symbol TIF which corresponds to the performance of inflation-protected securities issued by the U.S. Treasury, is at the highest since early 2008. Investors are taking notice of the recent moves of wheat, cotton, sugar as well as gold. What is fascinating all the while Govt officials are playing down inflation.
TIPS are adjusted with the increase (or decrease) in the Consumer Price Index. It is clear food prices are moving..at least where my wife shops. As much as this costs me ( Us) in the grocery times with inflation in the past have been very favorable for trend followers. As much as I hate back testing and doubt it…when I test my methodologies in a 10 year period in the 1980s…the returns ( including interest) have been nothing short of fantastic. However being the loyal trend follower I have no idea…inflation..deflation…bull market…bear market… I do not need to know..I just need to take low risk bets and follow the trend…This is what a long term trend follower does.
Futures trading involves risk. People can and do lose money