It's Been a 'Bad Ride' for TIPS ETF: TCW's Landmann

The video discusses the performance of TIPS during the inflationary period of 2021 and 2022, highlighting that they underperformed compared to nominal treasuries. TCW sees value in TIPS, while JP Morgan is cautious due to interest rate risks. The focus is on maintaining liquidity and waiting for better investment opportunities, particularly in credit markets as potential issues in commercial real estate arise.

What was the main reason for the underperformance of TIPS during the inflationary period of 2021 and 2022?

• High inflation rates

• Dominance of real rates

• Increase in nominal treasuries

• Decrease in stock market values

How does TCW view TIPS in the current market environment?

• As an outdated strategy

• As a risky venture

• As a compelling value

• As a poor investment choice

What is JP Morgan's stance on TIPS given the current economic conditions?

• They believe TIPS are immune to interest rate changes

• They suggest increasing TIPS holdings

• They see TIPS as a tremendous opportunity

• They recommend avoiding TIPS due to duration risk

What strategy does JP Morgan suggest for investors in the current market?

• Invest heavily in TIPS

• Hold cash and wait for better opportunities

• Diversify into international markets

• Focus on short-term stocks

What future opportunities does the final section anticipate?

• Growth in the real estate market

• Attractive credit-related opportunities

• Increase in consumer spending

• Stability in the stock market