Investors Benefit from Less Volatile Returns with Inflation-Protected Bonds
The study looked at how having inflation-protected bonds affects where people put their money. By looking at past bond yields and predicting inflation, researchers found that inflation-protected bonds have steadier returns and are less connected to stock market ups and downs. They suggest that including these bonds in a mix of investments can make a portfolio more efficient. Actual data from U.S. Treasury Inflation-Indexed Securities from 1997 to 2003 backs up these findings.