VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 05/24/22

The war in Ukraine clearly triggered the spike in oil prices and in agricultural prices as well. Inflation, interest rates and Fed policy are linked. Similarly, supply chain disruptions, the slowdown in China, and big-tech reversals are all Covid-related. The bottom line right now...

We cut developed market (DM) equities to neutral on a risk of the Fed talking itself into overtightening policy and China adding to a weaker global outlook. Stocks plumbed new 2022 lows on fears steep rate rises will trigger a growth slowdown. We see a brighter picture, but this may n...

If one is convinced that the secular tide on inflation has turned, TIPS might still be cheap on a longer-term basis. From a directional perspective, whether or not inflation is higher or lower than the breakeven inflation rate is the most important question. A recession triggered ...

Long-term clinical evidence has shown the most consistent bulwark has been Treasury Inflation-Protected Securities, or TIPS. This year, the iShares TIP fund has suffered a $4.5 billion net outflow while our table of five short-term TIPS ETFs have collectively raked in $5.6 billion in ...

In this post, I will look at some lessons that the market is urging us to learn from the current investing environment. Over the long term, equities tend to earn you an annualized 8%-10%. Internalize that investing in the stock market requires a sufficiently long time horizon. ...

There was a lot of volatility in stocks last week but in the end, the S&P 500 was down a mere 21 basis points. A rising currency is presumably negative for the export sector and positive for domestic purchasing power. On a sector basis, there were several winners last week wit...

The expected risk premium continued sliding in April for the Global Markets Index (GMI). Tuesday’s revision reflects a drop to a 5.4% annualized increase for the long term – a relatively large cut of 40 basis points from last month’s estimate. The forecast ref...

We continue to believe that ICSH is one of the better places to park cash to get some return without taking much risk. Unfortunately it has recently delivered negative total returns due to the quick rise in interest rate expectations, but going forward we believe it can return to deli...

Given the poor performance of stock and bond ETFs/funds so far this year, many will wonder what, if anything, one should do. There are four possible choices but which is best? While no one can predict the future, one can look at past returns to get an idea of how to proceed. ...

The iShares TIPS Bond ETF has sold off significantly thanks to the rise in bond U.S. bond yields. Risks of a significant equity market decline are rising and any financial market or economic slowdown would cause the Fed to curtail its rate hike plan. The long-term declining trend ...