SCHP News and Press, Schwab U.S. TIPs From 07/06/22

The revised long-term outlook projects an annualized return of 4.9%. The current risk premium forecast for GMI suggests that multi-asset-class strategies overall will generate lower returns relative to results posted in recent years. Combining forecasts via several models may prov...

Commodities (used in the production of goods) are considered a leading indicator of inflation. Recessions are a normal corrective phase of the economic cycle, but politicians, central banks, most financial advisors, and economists never see them coming. Central bank policies can h...

Earnings for the S&P 500, according to Howard Silverblatt’s work at S&P, are expected to rise 7.7% in 2022. Growth stocks were grossly overvalued going into that bear market and they took the brunt of the damage. Real estate did well last week with rates falling bac...

In a more fractured world, we believe governments and corporate decision-makers will increasingly focus on searching for safety and building resilience. Looking forward, rather than reaching for yield, we believe that investors will be reaching for resilience in their portfolio constr...

The Federal Reserve panicked last week and spooked investors into the worst week for stocks since the onset of COVID in March 2020. For bonds to rally, we need rates to fall and that will only come with better inflation news and/or weaker economic data. It is a very uncertain time...

For the fifth straight month, mutual fund investors were net redeemers of fund assets, withdrawing $129.6 billion from conventional funds for May. Fixed income funds (-$90.7 billion) witnessed net outflows for the sixth month in a row, while money market funds (-$1.3 billion) handed b...

Foreign holdings of U.S. Treasury Inflation-Protected Securities broadened in 2021, as global investors reduced their exposure to nominal cash-generating assets in response to high inflation. As the government can’t inflate away its inflation-protected debt, the TIPS market wil...

If you are an investor and sell every time your perception of uncertainty rises, you will avoid risk, but you will also miss opportunities. Our heightened state of awareness about uncertainty has us focused on the negative outcomes, assuming the worst-case scenarios will be realized. ...

The top ten ETF outflow leaders watched a combined $17.8B exit the door in May, with commodities among the most heavily represented groups. Beyond the commodity-related segments, the ETFs that led the exodus represented multiple other segments of the economy, including the financials and heal...

A long-run real return is what you get over and above long-run inflation. In Europe, it's still negative. In the US, it's barely positive. Lower market yields of late have come from an easing in inflation expectations. But with real rates still so low, there is a natural pressure ...