SOURCE:  Oregonian

TIPS at the Tipping Point

Brent Hunsberger, The Oregonian

February 2, 2013

Portland money manager Bill Parish used to be a big fan of TIPS -- a special U.S. government bond that guarantees a return at least as high as inflation.  "It's been a strategic part of my clients' portfolios for years," Parish said Monday of Treasury Inflation Protected Securities.

Yet the day we spoke, he'd sold most of his clients' last holdings of TIPS, moving the proceeds into a low-cost, short-term bond index fund instead.

TIPS have reached a tipping point of sorts. While institutional investors continue to gobble them up at Treasury auctions, individual money managers such as Parish are spurning them.

*** The rest of the article can be accessed by a google search under  "TIPS at Tipping Point." ***