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Comment by anonu | Hacker News Reader

The tide is going out: higher interest rates mean the economic decisions of the last 15 years will need to be recomputed. Cheap money is no more. Easier to earn a good return with a CD or bank account even.

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Where good return == lower than inflation rate. TIPS are positive rate now but unless in a tax advantaged account could fail to keep pace with inflation too.

When stocks and real estate are inflated and you fear a crash, isn't it better to put your money in bonds, CDs, etc?

I-bonds (lots of restrictions apply) are the instrument that loses the least value in this macro. Bonds have seen a spectacular haircut over the last 18 months [1]. You’re up against duration risk. Treasuries are only federally taxed, CDs are fully taxed, so a strategy some adopt is a short term treasury ladder until Fed go forward benchmark policy crystallizes (which leads to more firm asset class pricing information), at which point you possibly rebalance or reallocate.

(not investing advice)

[1] https://www.marketwatch.com/story/bond-markets-facing-histor...

There's a pretty low limit on the amount you can invest in ibonds per year. It's in no way a solution for people looking to protect assets in a bear market.

I felt they are inflated since around 2014. They might even be inflated and you still don't know when they will crash.

Until then by going long bonds or similar shenanigans you risk not making enough while waiting for the crash.

TIPS are not the everyday investor's product. You need to hold them to maturity to beat inflation - and few people are willing to lock up their money for 5, 10, or 30 years. In major market drawdowns like the ones we've seen, TIPS returns have not done well.

A high yield checking account is a better product for the typical investor - assuming they understand APY and that the yield resets periodically (monthly).

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