VGLT News and Press, Vanguard Long-Term Government Bond ETF From 09/02/22

Summary After gorging on +9% gains in the stock market (S&P 500 index) during July, investors suffered some heartburn pain in August (-4%). The indigestion really kicked in after Federal Reserve Chairman, Jerome Powell, gave a frank and candid outlook during his annual monetar...

Summary Before the Great Financial Crisis of 2008-09, savers could easily invest in perfectly safe GICs, bonds and savings accounts with interest rates over 4%. The low rate revolution became a war on savers that lasted the better part of twelve years. The yield on the five-ye...

Summary What's next for the bond market after Fed Powell's speech? Is the Fed pivot away for higher rates off the table? Outlook on inflation in Canada and the U.S. Stock markets tumbled following Fed Chainman Powell’s hawkish stance on rate rises. Gre...

Summary Traders expect the U.S. Fed to soften as Chairman Powell suggested they have reached a neutral rate with the last rate increase. Traders expect the U.S. Federal Reserve to softly pivot away from rate increases after reaching a “normal level.”. I believe t...

Summary Market rates are set to rise as financial conditions are not tight enough in the US; the US 10yr yield could even go as far as topping 3.5% again. That will pull rates higher elsewhere, including those in the eurozone. Remarkably, financial conditions are significantly...

Summary Equity markets have been powered higher by the TINA effect as yields have been unattractively low for years. Nominal and real yields have risen to potentially attractive levels due to the remarkable surge in inflation. The top priority for the Federal Reserve is to do ...

Summary If you want one asset class that has had a very good year, it’s the greenback or US dollar. If there’s one sign for a market reversal, I think it will eventually be accompanied by dollar weakness or a weaker UUP. Friday’s jobs report is a big deal ...

Summary According to some indicators, the US economy entered the bust phase of the monetary-inflation-driven boom-bust cycle during the first quarter of this year with the TMS growth rate still above 6%. The US money-supply data for July-2022, which were published on Tuesday of th...

Summary After trading in a range in recent months, in the wake of a year-long surge, the 2-year rate pushed above the previous high set in June, rising to 3.46%. Using the 2-year rate to guesstimate where Fed funds are headed continues to imply that the policy rate will rise to th...

Summary The US Fed continues to bring the big guns, raising rates another 75 bp (0.75%) on July 27, 2022. The DOT COM Bubble was unique in the sense that excess capital flowed into technology/internet companies’ hand-over-fist. I believe the current pre & post COVID...