SCHQ News and Press, Schwab Long-Term U.S. Treasury ETF From 08/31/23

2023-08-31 02:15:00 ET Summary Some idea of where equilibrium might be for interest rates is important to gauge both the stringency of monetary policy as well as the value opportunity for bonds. For investors, bond yields tend to over- and under-shoot their equilibrium in harmony ...

2023-08-31 00:30:28 ET Summary Even using conservative interest rate assumptions and aggressive stock market expected returns, long-term treasuries have a higher expected return and lower risk compared to the stock market. Bond math dictates that long-term treasury returns are asy...

2023-08-30 20:25:00 ET Summary This brief post highlights some under-appreciated news contained in today's revised estimate of Q2/23 GDP. Real growth in the quarter (annualized) was revised down from 2.4% to 2.1%, and inflation was revised down from 2.2% to 2.0%. We're very mu...

2023-08-30 08:45:00 ET Summary Federal Reserve Chair Jerome Powell's recent speech at Jackson Hole reiterated that interest rates will be "higher for longer.". The recent sell-off in the US Treasury market suggests that investors have finally accepted this higher-for-longer theme....

2023-08-29 19:10:00 ET Summary Many cite US and Canadian unemployment levels today near 50-year lows as grounds for economic optimism. Unemployment is a lagging indicator that commonly inspires misplaced confidence heading into recessions and then pessimism as it rises into subseq...

2023-08-29 13:20:00 ET Summary What higher rates could mean for oil and gold. Oil's rise and its impact on inflation. China's weakness continues to be a headwind for commodities. Fed Chair Jerome Powell is signaling he stands ready to raise interest rates again if in...

2023-08-29 12:50:00 ET Summary Fed Chair Jay Powell delivered a largely hawkish message. But I believe those comments were mainly for show - I don’t expect the Fed to hike rates again. ECB President Christine Lagarde said that central bankers need to talk about forecasts in...

2023-08-29 02:20:00 ET Summary The Fed will remain data-dependent. Strong economic and inflation data could prompt further hikes, while softening data could prompt a prolonged pause. While inflation numbers have eased in the past two months, the Fed believes that inflation is too ...

2023-08-28 15:55:00 ET Summary The economic debate shifted gears with diminishing concerns about a recession, leading U.S. long-term Treasury yields to rise sharply. The net result was a less inverted U.S. yield curve, not because short-term interest rates fell, but because long-t...

2023-08-28 08:15:00 ET Summary Our signal is telling us that the market is out of balance. Volatility is being priced too low, which we believe to be an indication that insurance (downside hedges) is an afterthought. Higher rates could take time to have an impact. Meanwhile, t...