Surprising Good News for Income Investors

Bonds have been a disaster lately, with prices falling and yields soaring. But for investors looking to get into the bond market right now, there's some good news about one popular type of bond.

In the following video, Fool contributor Dan Caplinger explains how inflation-indexed bonds hit a milestone last week, with 10-year Treasury Inflation-Protected Securities seeing their yields turn positive for the first time since the end of 2011. What that means is that finally, investors can hedge against inflation while guaranteeing themselves positive real returns on their money. Dan notes that many exchange-traded funds give you exposure to different parts of this bond-market niche, but he closes with a warning on the special tax treatment that makes them more suitable for retirement accounts.

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Fool contributor Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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