VGLT News and Press, Vanguard Long-Term Government Bond ETF From 10/07/22

Summary It’s the final quarter of the year, and we’re in the midst of a nasty market crash. It wouldn’t be such a big deal to see stocks getting beaten up so bad if it weren’t for the fact that bonds have been pummeled as well. Part of the problem w...

Summary Atlanta Fed President Raphael Bostic on Wednesday suggested a pivot may come after two more rounds of rate hikes at the upcoming Nov. 2 and Dec. 14 FOMC meetings. The Fed funds target rate is currently 3.0%-3.25% and Fed funds futures are pricing in high odds that it will ...

Summary A critical factor contributing to the market's downward trajectory this year is the high level of inflation and the Fed's higher interest rates. The pandemic and the related shutdowns create a unique environment making it difficult to interpret some of the recent economic ...

Summary Market rates are primed for a large fall. But first, we need to see hints of a peak in official rates, and that still depends on a very uncertain path for (core) inflation. Once that is in, or we are much closer to it, we can prepare for a structural decline in market ...

Summary The broadest measure of the bond market, the Bloomberg US Aggregate Index, has returned -14.61% YTD through the end of the third quarter. All segments of the bond market have posted negative returns YTD. 2022 is shaping up to be the worst performance year in the 45-yea...

Summary Higher interest rates are having an impact on Job Openings and Quits, both viewed as psychological indicators rather than economic indicators. Real Retail Sales remain steady which is a ‘hard count’ economic indicator. Retail sales may even have an up-tick in...

Summary Chasing performance, fear of missing out, and focusing on the negatives are three common mistakes many investors may make. History shows investors who overreact to near-term market events typically end up doing worse than if they stuck to their long-term plan. Just hav...

Summary Declining inflation expectations enhance the prospect of a potential Fed pivot, or at least pause in tightening monetary policy. However, inflation expectations are still historically high, and central banks globally will be worried about the risk of inflation being anchor...

Summary The dollar has not only surged but also supplanted U.S. Treasuries as the most effective hedge against equity drawdowns. Record stimulus, both monetary and fiscal, had created a robust recovery and, along with disruptions to global supply chains, the seeds for future infla...

Summary Treasury yields continued to rise during the third quarter of 2022. Despite volatility in equities and spreads throughout the quarter, the net movement in spreads was minimal. As we move into the fourth quarter of 2022, we will look to continue increasing the book yiel...