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Byline: KEN HOOVER
The economy is improving, and the possibility of inflation is on the distant horizon, so some analysts think this might be a good time to buy TIPS.
TIPS are Treasury Inflation-Protected Securities. They're basically Treasury bonds that hedge the investor against inflation.
Say you buy a newly issued 10-year TIPS. You get an interest payment every six months, just like with the old fashioned T-note. Instead of the constant coupon amount, your principal increases by the amount of the consumer price index. So the amount you're paid in interest also increases by the amount of inflation.
Like T-bonds, your investment is backed by the full faith and credit of the U.S. …