Research Roundup: Crisis Hedges, Global Diversification, and Predicting Election Year Outcomes
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
The Largest Arbitrage Ever Documented – TIPS in 2008
A story behind the dislocation of TIPS and Treasuries.
How to Hedge Inflation and Avoid the Biggest Bond Risk
Bonds are less volatile than stocks – but in the long-term they’re just as risky. This post examines the best ways to hedge inflation risk.
The Origin of TIPS, How They Work, and an All Weather Mistake
A historical look at inflation-indexed bonds, how they perform differently than regular bonds, and data on how few investors own TIPS.
Book Summary of Where are the Customers’ Yachts
Key takeaways and quotes from a classic book on markets and the investment business.