IVOL News and Press, Quadratic Interest Rate Volatility and Inflation Hedge From 09/21/22

Summary After several years of steady growth and low inflation, policymakers now face a delicate tradeoff between bringing down inflation or sustaining economic growth amid heightened macro and market volatility. We expect the Fed to remain committed to aggressive rate hikes. ...

Summary The recent August print showed that consumer prices continued to rise year over year – albeit more slowly than prior months. We have remained a bit more cautious than the market’s consensus inflation expectations. We’re not convinced that inflation...

Summary The financial markets were shocked by the US CPI for August. The evidence continues to accumulate that inflation is now in a downward trend. The monthly chart shows that the numbers remain very high relative to everything over the past twenty years prior to the past fe...

Summary The new regime of macro volatility is playing out with weaker growth, persistent inflation and volatile markets. We stick with our dialed-down risk stance. U.S. stocks slumped and yields surged on a renewed rise in core inflation. We’ve argued inflation will be pers...

Summary Nobody knows how high interest rates have to rise in order to slow and ultimately reverse the recent rise in inflation. Only excess money causes inflation, and there seems to be a lot less of it recently, which is great news. Supply chain bottlenecks are clearing up ra...

Summary There is abundant evidence that inflation pressures are cooling. I can't emphasize enough that this inflation flare-up was not caused by a Fed policy error: it was caused by the federal government's attempt to soften the blow of Covid lockdowns. Inflation would remain ...

Summary The August CPI report was a disaster. Inflation still isn't transitory. Inflation is no longer an energy issue. Inflation is high across rent, food, services, and so on. More Fed hikes are coming. We could see a 100-base point increase this month. What worked durin...

Summary Lots of commentators love I Bonds. A high "teaser" rate today sounds good, but what if inflation gets tamed? Think more about your investment profile and goals before you jump in. When inflation started picking up last year, every blog writer and financial co...

The Quadratic Interest Rate Volatility and Inflation Hedge ETF is an exchange-traded fund that tries to capture the rates of market volatility. One of its stated goals is to provide a hedge against inflation and fixed income volatility. IVOL has a dual factor portfolio composition...

The recent rise in inflation has been top of mind for income investors. In this article, we take a look at some of the things investors ought to consider if they decide to hedge their inflation exposure. And take a look at the different instruments at the investor disposal. ...