VGLT News and Press, Vanguard Long-Term Government Bond ETF From 09/08/22

Summary Jackson Hole reset expectations to focus more on inflation. The U.S. dollar should stabilize over the medium-term amid hawkishness from other central banks and slowing economic data. At stake is Europe’s ability to refill their storage tanks ahead of winter. ...

Summary If you look back over the first eight months of this year, it is truly amazing to see how the money and bond markets’ monetary policy outlook continues to change. Quantitative tightening (QT) was the “easy” part, as most market participants correctly s...

Summary The Russians turned off the gas to Germany and other EU countries that rely on Nord Stream 1. The reason why EU natural gas futures were down last week was the news that Germany was ahead of its schedule for winter storage. If the natural gas situation blows up EU fina...

Summary The FOMC began raising rates, at its March meeting, by 25 basis points, and followed in May with a 50-basis point increase, then began frontloading its policy tightening by 75 basis points in June and another 75 basis points in July. Markets became concerned that the Fed m...

Summary The Fed has made abundantly clear that it will tighten monetary policy until inflation is virtually vanquished. And yet, those who have no choice but to be nearly fully invested at all times have completely ignored this fact and were left trying to convince the investing p...

Summary Fed officials are looking for evidence that this year’s rate increases and tightening of financial conditions will bring inflation back down to 2%. The tight labor market has not shown any signs of cooling, with unemployment back to pre-pandemic levels and wage grow...

Summary With the Fed draining $95 billion in liquidity from the banking system as it accelerates QT, things could go from bad to worse, although bearish sentiment is increasing and the market is getting very oversold. There are still areas of the market that are worth considering,...

Summary Policymakers are recognizing a new macro regime but are ignoring the trade-off between inflation and growth. A resulting recession is bad news for risk assets. Stocks fell last week after hawkish comments by Fed Chair Jerome Powell and data showing another month of jobs ga...

Summary In most countries/regions around the world, monetary inflation rates peaked at extraordinary heights in early 2021 and have since crashed. G2 True Money Supply is the primary driver of the global boom-bust cycle. Once central banks have created a bubble the best they c...

Summary The economic data released last week continued to show a modest improvement in the economy since July. The 10-year Treasury yield has been rising since the summer of 2020 although there was a pullback in rates that lasted from April to August of last year. Best-perform...