Investing in Inflation Protection

Nov 10, 2010

Both inflationary and deflationary concerns have emerged as global economies continue to struggle with recovery.  In this confusing environment, inflation-protected bonds can play an important role in plan sponsors’ asset allocation dilemma especially in light of yesterday’s Fed announcement of Quantitative Easing (II) implementation plan.  We find that IPBs have exhibited some distinct differences from other asset classes during the past decade.