Strategies to Combine TIPS and Stocks for Inflation-Resistant Growth

Investors grappling with inflation's erosion of purchasing power are increasingly turning to hybrid portfolios that marry the growth potential of equities with the stability of Treasury Inflation-Protected Securities. Five tactical approaches emerge for balancing these asset classes.

The foundational hedge anchors portfolios with TIPS to counterbalance equity volatility during inflationary spikes. Barbell strategies take polarization further, allocating extremes—high-growth stocks paired with maximum-security inflation-linked bonds.

Core-satellite models offer middle ground, maintaining a TIPS-dominant base while pursuing alpha through targeted stock selections. Disciplined rebalancing between these assets forces contrarian moves—trimming winners and buying undervalued positions.

Defensive configurations combine inflation-protected securities with dividend aristocrats and value stocks, creating cash FLOW resilience. These blended approaches acknowledge a fundamental truth: neither asset class alone solves the dual mandate of wealth preservation and appreciation.