I’ve added to my position in SHY, a short-term Treasury bond fund that I use as a ‘cash equivalent’ and find to be an excellent portfolio balancer, among others. I was thinking about the inflation protected TIP fund, but then viewed how it got decimated in Q4 2008 and decided to go with more SHY. Sure, it goes down a bit when people get concerned about inflation and interest rates rise, but it turns over a dividend every month and adjusts quickly, unlike for example the long-bond fund TLT.
I think SHY has been knocked down enough for now.
Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).