Cryptocurrency Q&A
Can tips go down in value?
Can tips go down in value?
CryptoAlchemy
Mon Nov 11 2024
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6 answers
1107
I'm curious if tips, like stocks or other investments, can decrease in value. I'm worried that the tips I've received might not be worth as much in the future.
6 answers
Michele
Wed Nov 13 2024
The principal of a TIPS, also known as its par value or face value, exhibits a unique relationship with inflation and deflation.
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CryptoBaroness
Wed Nov 13 2024
The inflation-adjusted price takes into account any increases in the principal due to inflation over the bond's lifetime.
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SamuraiCourageous
Wed Nov 13 2024
During times of inflation, the principal of a TIPS increases in value, reflecting the eroding purchasing power of currency.
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charlotte_bailey_doctor
Wed Nov 13 2024
Conversely, in periods of deflation, the principal of a TIPS decreases, aligning with the strengthening purchasing power of currency.
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KpopHarmonySoulMateRadiance
Wed Nov 13 2024
Upon the maturity of a TIPS, investors are entitled to receive either the inflation-adjusted price or the original principal.
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