The “inflation protection” provided by TIPS relies on the good-faith reporting of the same government which creates and benefits from the inflation.
If inflation as measured by the CPI picks up beyond the single-digit numbers of normal years, do you really expect TIPS to remain honestly valued? Even if that means they outperform all other assets “risk free?”
If inflation as measured by the CPI picks up beyond the single-digit numbers of normal years, do you really expect TIPS to remain honestly valued? Even if that means they outperform all other assets “risk free?”