VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 06/21/22

The Federal Reserve panicked last week and spooked investors into the worst week for stocks since the onset of COVID in March 2020. For bonds to rally, we need rates to fall and that will only come with better inflation news and/or weaker economic data. It is a very uncertain time...

Foreign holdings of U.S. Treasury Inflation-Protected Securities broadened in 2021, as global investors reduced their exposure to nominal cash-generating assets in response to high inflation. As the government can’t inflate away its inflation-protected debt, the TIPS market wil...

If you are an investor and sell every time your perception of uncertainty rises, you will avoid risk, but you will also miss opportunities. Our heightened state of awareness about uncertainty has us focused on the negative outcomes, assuming the worst-case scenarios will be realized. ...

A long-run real return is what you get over and above long-run inflation. In Europe, it's still negative. In the US, it's barely positive. Lower market yields of late have come from an easing in inflation expectations. But with real rates still so low, there is a natural pressure ...

In the same way inflation has roiled financial markets on its way up, it also has the potential to impact them on the way down, should it come down. Our view is that inflation is nearing a cyclical peak, and we expect it to begin cooling off from here. We’re keeping an eye ...

We still prefer equities over fixed income on a strategic horizon, but we moderate our stance after this year’s big market moves. Stocks bounced back on hopes the Federal Reserve can soon pause rate hikes. But we don’t expect a sustained rebound until the Fed takes a cle...

The S&P 500 held the 3,800 level last week – a key Fibonacci retracement level for the technically inclined investor – thus, with falling inflation expectations, the stock market could turn friendlier quickly. In addition to the S&P 500’s retracement level...

Gold tends to become more valuable when the real interest rate is trending downward and less valuable when the real interest rate is trending upward. The only way to get an accurate read on the real U.S. interest rate trend is via the yields on Treasury Inflation Protected Securities....

Short-term Treasury Inflation-Protected Securities are a safe-haven investment in this turbulent market. They have no credit risk, no inflation risk, and very little interest rate risk. iShares 0-5 Year TIPS Bond ETF is the fund I most strongly recommend. For further details...

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...