VGLT News and Press, Vanguard Long-Term Government Bond ETF From 11/14/22

Summary We are in a landscape of divergences and potential pivots. The capacity to absorb structurally higher rates is likely to be key over the next year or two. We think the volatility generated by pivots can continue to offer a favorable backdrop to global macro and other t...

Summary The S&P 500, which fell to a year-to-date low of minus 25 percent in the middle of October, built the magnitude of its recovery back by nearly ten percent, and is now down just 16 percent from January. We do not see much in the way of surprises ahead from the big direc...

Summary Federal Reserve Chairman Jerome Powell stepped to the podium at his most recent press conference and delivered a very clear message: The market should expect rates to remain higher for longer. Yes, inflation remains the chief concern for markets and the economy right now, ...

Summary The personal consumption expenditures price index, which is the Fed’s preferred measure of inflation, continues to grow much faster than Fed officials would like. The Fed has raised its federal funds rate target considerably over the last few months. The neutral...

Summary While the U.S. economy has absorbed tighter financial conditions so far, it doesn’t mean it will continue to do so. The bullish expectation is that when the Fed finally makes a “policy pivot,” such will end the bear market. While that expectation is no...

Summary Highlights from the U.S. October inflation report. U.S. midterm elections update. Do markets prefer congressional gridlock? On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Sophie Antal-Gilbert, Head of AIS Portfol...

Summary Inflation still looks set to remain high and the Federal Reserve remains on track to continue raising interest rates. The stock market surged and Treasury yields fell sharply. Despite encouraging inflation news and future estimates, uncertainty remains high about how f...

Summary We believe that various fixed income asset classes are more attractive now and can serve as yield enhancers or portfolio diversifiers, or both, in a variety of market environments. Using broad high yield as an example, at current levels the overall yield would need to incr...

Summary The Fed’s first big policy mistake of the pandemic era was having “the courage to act”. Arguing for a faster response of inflation to monetary policy is the Fed’s balance sheet changes. The Fed will have to push the Federal Funds rate up at ...

Summary The CPI report came in shockingly cooler than expected on November 10. However, the inflation battle is far from over. The Fed will probably push back against markets should financial conditions ease. The CPI report on November 10 was shocking , just that ins...