Interest rate, inflation outlook should have investors turning to TIPs

Money Life with Chuck Jaffe

Tom Lydon, chief executive officer at ETFTrends.com, says that the year ahead will be more challenging for fixed-income investors who have been saddled with low yields for years but who at least could count on safety from their long-term bond holdings. With the outlook for the economy changing and with inflation hitting hard right now and lingering longer than most expected through the recovery from the pandemic, Lydon made the iShares TIPS Bond fund his 'ETF of the Week,' noting that inflation-protected securities are more attractive now than they have been in years and should ease some of the yield and volatility concerns investors will face in 2022. Also on the show, John Cole Scott, chief investment officer at Closed-End Fund Advisors and the executive chairman of the Active Investment Company Alliance, returns to forecast the year ahead in closed-end fund investing, including some funds he says are well-positioned and constructed for 2022. And Chuck had promised that his final interview of the year would be with his friend Michael Falk, and so we rebroadcast his final chat with Michael as a touching reminder that days are long but years are short, challenging us all to make the most of our time.