SCHP News and Press, Schwab U.S. TIPs From 10/13/22

Summary Financial markets are highly liquid and far from breaking down. Since a strong economy is going to be tough to come by these days, high real rates confirm that money is very tight. The interest cost of our federal debt is less than 3% of GDP, and that's relatively low ...

Summary The Fed had paved the way for a major inflation problem during the first half of 2020 - a problem that became blatantly obvious in 2021. The equity bubble has burst, the US economy has entered or is about to enter recession territory, commodity prices have set intermediate...

Summary The SCHP ETF holds a portfolio of Treasury Inflation-Protected Securities. SCHP has an effective duration of 6.9 years, which has been the primary driver of YTD declines. Individual investors can also consider a non-rolling bond ladder of TIPS bonds to mitigate duratio...

Summary SCHP functions as an effective hedge against inflation, and its current yield is high due to the recent multi-decades-high rate of inflation. SCHP's yield is attractive relative to treasuries and bonds, but that might change due to the Federal Reserve’s hikes in int...

scPharmaceuticals ( NYSEARCA: SCHP ) has entered into a binding term sheet with respect to a $100M secured debt facility with funds managed by Oaktree Capital Management. The potential transaction is subject to the parties’ execution of definitive agreements and cus...

Summary A critical factor contributing to the market's downward trajectory this year is the high level of inflation and the Fed's higher interest rates. The pandemic and the related shutdowns create a unique environment making it difficult to interpret some of the recent economic ...

Summary The broadest measure of the bond market, the Bloomberg US Aggregate Index, has returned -14.61% YTD through the end of the third quarter. All segments of the bond market have posted negative returns YTD. 2022 is shaping up to be the worst performance year in the 45-yea...

Summary On November 9, 2021, I launched the ETF Reliable Retirement Portfolio. Working from various 2022 investment outlooks as well as other research material, I constructed a 16-ETF portfolio that seeks to balance diversity, growth, and current income. Q2 closed with all 3 m...

Summary The Federal Reserve continued to raise short-term rates in their battle to slow inflation in the third quarter. The end of the quarter saw Hurricane Ian deal a lethal blow to southwest Florida. The economic impact is severe and portends a big downshift in the economy o...

Summary Rising prices continue to confound expectations that slowing global growth will ease inflation pressures. Financial market turbulence may be here to stay for some time. The ability to rebalance negatively correlated assets helps generate income and potential return whi...