The inflation and interest rate will increase, but when, next year or in two years? The best saving is to reduce debt, otherwise TIPS or short term bonds.
I layered 40% of my portfolio into long term TIPS in Nov., 2008 (when their yield was the same as Treasuries). They have appreciated 25% since then. Been tempted to sell, but I know the coming storm is happening. Their yield is just so low now. I have also taken a position (probably too early) in TBT (20 year inverse bond fund). I see it protecting the interest rate risk portion of my TIPS, but the fund gets hammered when money flows into bonds.
I foresee both stocks and bonds taking a dump when it hits the fan. An unusual occurence, but when the U.S. no longer is viewed as the safe haven - then what?
I just wish I had listened to the gold bugs. I sure would like some of that shiny metal at $800 vs. $1200/oz.