It doesn’t have to be so dramatic. Just sustained inflation at a level that wouldn’t even be a blip on the global inflation history map (say 10%) would utterly devastate a nominal bond portfolio in short order without being anywhere near “extreme.”I do have a high SS income and a good number of IBonds.Definite mistake. The 3% annual inflation is going to eat the portfolio slowly. Another inflation event like the past few years could noticeably reduce your real income. A serious inflation event like 20's Germany will take your portfolio to $0.
I will also be buying TIPS.
The stock market could go into a death spiral as well if we are talking extremes.
Statistics: Posted by ScubaHogg — Sat May 25, 2024 1:04 am