VEA News and Press, Vanguard FTSE Developed Markets From 05/02/22

We don’t see a wage-price spiral. Companies are actually paying less in labor per unit of output, we find. We think wages can rise more without adding to inflation. The S&P 500 plunged to new 2022 lows last week. We remain overweight equities in the inflationary backdrop bu...

Commodities were the exception, posting a solid gain. Otherwise, losses prevailed, based on a set of ETF proxies. Notably, it’s the same story for year-to-date results in the wake of last month’s losses. The Global Market Index (GMI) resumed its decline in April. Thi...

Investors face a trifecta of worries: rate hikes, inflation and volatility. In Q1 2022, equity markets took stock of a changing economic and geopolitical landscape. Looking forward, economic and geopolitical uncertainty will likely increase. For further details see: Look...

We like emerging market (EM) local debt within an overall bond underweight. Much monetary tightening has been done, and valuations are compelling. U.S. Treasury yields hit new three-year highs last week, and equities fell. We still think stocks can weather the yield rise in the inflat...

Historically reliable macro indicators signal growth for the U.S. economy. Our leading indicators weakened slightly during the past month but do not signal an imminent recession yet. Sustained bear markets in equities unfolded in recessions only. The S&P 500 remains on tar...

We prefer equities even as bond yields have sprinted higher. Global growth is still solid, and we see central banks ultimately living with inflation. U.S. 10-year yields hit new three-year highs last week, and stocks fell. The European Central Bank affirmed our view it will normalize ...

International Monetary Fund (IMF) indicates that while the Ukraine war has not only led to a humanitarian crisis but it has led to a significant slowdown in global growth in 2022 and add to inflation. Leading the pack are the fuel and food prices which have increased dramatically denting low-...

WisdomTree Commodity (GCC) rose for a second week, popping 3.2% and lifting the price close to a record high. Last week was another washout for the major asset classes ex-commodities. The majority of the major asset classes continue to post deeper drawdowns than GMI.F. For f...

Fundamentals and technicals remain constructive for equities short term. Investors are climbing the wall of worry as sentiment shifts from fear to greed. The S&P 500 rally will most likely persist towards 5000-5200. For further details see: Stocks Keep On Climbing Th...

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. As alluded to in my title, it is n...