VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 09/11/22

Summary In today's macro environment, short-term instruments are preferable investments for non-stock allocations. TIPS deserve close attention as their YTM is positive today. Short-term TIPS should deliver better returns than regular Treasuries of similar maturities. VTIP and...

Summary M2 has essentially flat-lined since last January, which was well before the Fed began to take tightening action. This means that the behavior of M2 is obviating the need for the Fed to pursue a typical tightening, which almost always ends with a recession. The issue of...

Treasuries are unlikely to provide high long-term returns, but they are likely to outperform both commodities and equities over the coming quarters. The deceleration in three key indicators - commodity prices, corporate earnings, and interest rates - have historically implied cyclical...

While lower than expected, headline U.S. inflation at 8.5% still remains well above the Fed’s 2% target. Markets interpreted July’s slower inflation as a signal that the Fed may not need to tighten as much. Has inflation peaked, or will the intense competition over a...

Gold has an inverse correlation to real yields, such that when real yields rise, Gold falls, and vice-versa. The RSI and the MACD are at extreme lows now that are consistent with the beginning of prior rallies in TIPS, i.e., far lower real yields, which typically translates into far h...

Long-term investors need to have a strategy they can stick with no matter what happens, a strategy that keeps them on an even keel. Investing is hard and determining your risk tolerance is far from an exact science. There are a lot of people these days who seem to want the market ...

The Vanguard Short-Term Inflation-Protected Securities ETF now offers positive real return prospects for the first time since the height of the Covid crisis. The VTIP is ideal for investors looking to benefit from falling short-term yields while also protecting against continued eleva...

Inventories have risen recently and there has been a lot of commentary about how this will negatively impact the economy. My brief overview of markets is that large growth stocks are still overvalued even as they led the recent rally. The sentiment about the economy is still quite...

We highlight the top three behavioral biases to avoid in the new, volatile market regime - and give tips on how investors can try to overcome them. Stocks rallied and yields fell last week after markets concluded the Fed’s pace of rate hikes will slow. We are less sanguine and ...

It’s all about high inflation at the moment. The Federal Reserve is certainly focused on inflation risk and is set to raise interest rates again in July 27’s policy announcement. A key reason that inflation’s trend tends to reverse during recessions: tighter monet...