SCHP News and Press, Schwab U.S. TIPs From 01/27/23

Summary Can the bond market rally last? What the rally in bonds means for the 60/40 portfolio. End of the rate hike cycle in sight? The bond market has started 2023 on a much stronger footing than it was on for much of last year. Greg Bonnell speaks with Scott Colb...

Summary China’s reopening, lower energy prices and cooling inflation reinforce our long-term positive view on equities. Yet, we think market optimism has come too soon. Stocks paused their rally and bond yields steadied after recession worries returned. We think we are starting t...

Summary Strains are building, and the U.S. will likely enter recession in the second half of 2023. By then, Europe will likely be emerging from recession, while China and Emerging Asia may be enjoying a COVID-reopening-inspired recovery. Segments of the inflation basket will soften rapi...

Summary SCHP owns a portfolio of Treasury Inflation-Protected Securities. 2022 was a surprise to many investors, as SCHP delivered a negative total return despite soaring inflation as the fund suffered from duration declines. Looking forward, slowing inflation with declining interes...

Summary On a short-term basis, gold, silver and mining stocks are looking overbought and in need of the pullback. The divergence between gold and real yields has again become pronounced, suggesting precious metals markets may have gotten ahead of themselves for the time being. Takin...

Summary A historic 2022 taught us to widen the lens of possible scenarios, factor in geopolitical risk and use a new playbook for more frequent portfolio changes. Global stocks ended the year down 18%, while bonds fell 16%. This marked the biggest market storm in decades amid inflation ...

Summary Treasury yields experienced a high level of volatility during the fourth quarter. Despite the volatility in equities, spreads on investment-grade corporates and taxable municipals dropped. Wider spreads and longer durations hurt our performance for most of the year, but that...

Summary TIPS performance could rival that of the S&P 500 over the next decade. TIPS can serve as a low-cost, do it yourself annuity for those near or in retirement. There are important differences between buying TIPS via a fund/ETF or a bond ladder. The ladder has several ke...

Summary While price inflation appears to be easing some, the data indicates it is far from whipped. At this point, you can spin the price inflation data either way. It is reasonable to think that price inflation will continue to cool. The bigger problem is that this “high...

Summary Fiscal 2022 was the 21st consecutive year of a Federal budget deficit. Total U.S. Treasury debt at fiscal 2022 year-end was $30.9B. U.S. Treasury debt rose $8.5B in the three fiscal years ending in 2022. The Federal Reserve increased its holdings of U.S. Treasury debt by...