VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 08/23/21

A pure zero-coupon bond, which is essentially the building block of all of finance because it is part of the discount factor, is the simplest way to take this concept and put it into a simple atomic calculation. If you do not have a market meltdown, that asset price inflation will slo...

Last December, the Fed indicated that tapering would begin after “substantial further progress” toward the central bank’s employment and price-stability objectives. The Fed’s priority is to avoid disruption, making the successful 2014 taper a logical starti...

U.S. treasuries are, by far, the largest and most liquid market in the world. For decades, sophisticated market participants have looked to treasuries as the best and fastest interpreter of rapidly breaking macroeconomic data. In moments of high economic distress, money has histor...

After nearly three decades of low levels, inflation has recently emerged as a primary concern for investors. But many stocks are at or near all-time highs and valuations may appear to be expensive, so rather than choosing individual equities, a trader may opt to use CME Group’s...

TIPS can do better than normal Treasuries in an inflationary environment. However, counter-intuitively, they are still virtually guaranteed to underperform inflation. TIPS are a low-volatility way to play defense against inflation, but some more volatile assets can be the biggest ...

The New Normal looks a lot like the Old Normal in that it is unknown and ever changing. All we can do is observe the present with clear eyes. For now, the economic outlook is still pretty good. It isn’t the boom everyone was expecting a few months ago, and it probably wonȁ...

So historically we have not seen negative yields. Ever. I’ve looked at a lot of history books, I have not found persistent nominal negative yields, at least in written history. Right now, it would be a little bit tough to say that interest rates are free. Interest rates are whe...

GMI’s 10-year Sharpe ratio (SR) edged up for a fifth straight month to 0.86, the highest since January 2020, based on a rolling ten-year window via monthly data. Profiling GMI through a drawdown lens also reflects an extended stretch of low risk. GMI is useful as a baseline...

The projected risk premium for the Global Market held steady in July at an annualized 6.0%, unchanged from the previous month. Despite the recent bounce, GMI’s trailing 10-year performance remains well below the previous 8%-plus peak. No one really knows what risk premia wi...

Most of the major asset classes continued to rise in July, led by US real estate investment trusts (REITs). US equities continued trending higher. The bull run also persisted for the Global Market Index (GMI) in July. For further details see: Major Asset Classes: July 20...