STIP News and Press, iShares 0-5 Year TIPS Bond From 09/12/22

Summary Lots of commentators love I Bonds. A high "teaser" rate today sounds good, but what if inflation gets tamed? Think more about your investment profile and goals before you jump in. When inflation started picking up last year, every blog writer and financial co...

Summary In today's macro environment, short-term instruments are preferable investments for non-stock allocations. TIPS deserve close attention as their YTM is positive today. Short-term TIPS should deliver better returns than regular Treasuries of similar maturities. VTIP and...

Summary Many measures of real estate activity have softened after a remarkable run, including pending and new home sales. Home prices remain high, with the latest data showing median home prices climbed approximately 11% vs. a year ago to a record $404,000. Given the growing d...

Summary The real yield to maturity on the STIP is a respectable 1.06%. This yield is based on the current nominal yield minus average inflation expectations over the next 2.6 years. Short-term inflation expectations have fallen too fast recently and there is potential for them to ...

Summary M2 has essentially flat-lined since last January, which was well before the Fed began to take tightening action. This means that the behavior of M2 is obviating the need for the Fed to pursue a typical tightening, which almost always ends with a recession. The issue of...

While lower than expected, headline U.S. inflation at 8.5% still remains well above the Fed’s 2% target. Markets interpreted July’s slower inflation as a signal that the Fed may not need to tighten as much. Has inflation peaked, or will the intense competition over a...

Gold has an inverse correlation to real yields, such that when real yields rise, Gold falls, and vice-versa. The RSI and the MACD are at extreme lows now that are consistent with the beginning of prior rallies in TIPS, i.e., far lower real yields, which typically translates into far h...

The rout in bonds so far in 2022 has been deep and wide, with a notable exception: short maturities, which have provided valuable stability that’s otherwise in short supply. This year’s experience with fixed-income securities is a reminder that short maturities sometimes...

Long-term investors need to have a strategy they can stick with no matter what happens, a strategy that keeps them on an even keel. Investing is hard and determining your risk tolerance is far from an exact science. There are a lot of people these days who seem to want the market ...

Inflation fighting exchange traded funds will be in focus on Wednesday, when the financial community will receive a highly anticipated reading on consumer inflation. With the July CPI print set to be released, both equity-focused and bond-based TIPS funds could see additional volatility...