By 
Didier Darcet
17 September 2021

Bonds, TIPS, Cash, or Gold?

US Investors worried about equity valuations safely reallocating to fixed income. Safely?

With 10Y US government bonds providing negative real rates, losing more than 5% in the last 12 months (same for gold), cash yielding zero, and expensive TIPS reaching a 2 standard deviations’ outperformance vs. fixed-coupon bonds year-on-year, what exactly does safely mean?

Here, we propose a simple rule to dynamically select the best US fixed income asset.

The simplest rule ever.


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