IVOL News and Press, Quadratic Interest Rate Volatility and Inflation Hedge From 07/05/21

Reverse repurchase agreements have exploded to a trillion dollars in money that the Fed is sucking out of the financial system. The Fed is effectively being forced by interest rates within the intra-banking system to take as much cash out of bank reserve accounts as it is adding via i...

Investment uncertainty is focused on the nature of the current spike in inflation, which the Fed argues is transitory, though a growing number of people do not buy this narrative. Historically, the Fed has never been able to head off any longer-lasting inflation uptrends without a recessi...

The first signs of inflation have bubbled up in the market. It is unclear if inflation will be sustainable, but the risks of entering a new inflationary regime need to be considered. Many see a return to the pre-COVID environment of secular stagnation. But a breakout to higher inflati...

MSCI US REIT Index rallied 2.7% in June, which marks an impressive run of eight consecutive monthly increases. The Russell 3000 Index jumped 2.5% in June, the fifth straight monthly advance. Comparing GMI to US stocks and bonds shows that global asset allocation remains competitiv...

The most recent data from the Bureau of Labor Statistics show that CPI rose by 5.0 percent over the past 12 months. This is the highest rate of inflation since before the 2008 financial crisis. Swings in the price of oil are why many economists rely on “core” rates of in...

Inflation has been so low for so long that most of us can’t remember what it’s like to see the prices of goods and services rise in a way that we actually notice. While many have been concerned about government debt for a while now, the amount of money we’ve print...

Faced with higher inflation numbers, the Federal Reserve has begun to create more meaningful parameters around its evolving stance on monetary policy. Although the changes could be less dramatic than many expect, we believe that investors should be prepared for higher market volatilit...

The reopening should continue across the major developed economies through the second half of 2021. The focus for markets has shifted to the strength of the growth rebound, the implications for inflation and the timing of central bank moves to taper asset purchases and eventually rais...

Inflation figures, which had been more harmonized than not for decades, all of a sudden they are acting a bit too idiosyncratic for once. That’s actually a red flag warning against inflation. The Treasury market is the farthest out of whack to inflation estimates. US inflation ...

Amid the economic recovery and increased demand for commodities, raw materials, and services, inflation is rising worldwide to the point that some analysts believe it could trigger another global economic crisis. However, inflation is not about high demand for products and less suppli...