The decision to buy now shouldn't come down to the current yield, but to your expectations about the consequences of the Fed's actions and what it could do to prices and, by extension, the other fixed-income instruments in your portfolio. For years, we have been living with a manageable rate of inflation, but that may change soon. As for me, for most clients, I allocate 15% to 20% of the fixed-income portion of their portfolio with iShares Barclays TIPS Bond Fund.
At the time of publication, TIP was a client holding.

Roger Nusbaum is a portfolio manager with Your Source Financial of Phoenix, and the author of Random Roger's Big Picture Blog. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Nusbaum appreciates your feedback; click here to send him an email.

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