Technical Outlook: Consider This TIP

I currently like the Treasury inflation-protected bonds, such as the iShares Lehman Tips Bond Fund (TIP Quote) ETF. I believe that inflation is drastically understated by the U.S. government's numbers and that as long as the world doesn't enter into a global recession, Treasury inflation-protected bonds may turn out to be a pretty good investment option.

You can see from the chart below that the price recently broke above the 50-day moving average and intermediate-term downtrend on increasing volume. I was glad to see it pull back to test that support and then move back up. Along with the potential of appreciation in the shares, the TIP sports a 5.8% dividend.

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