VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 07/26/22

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...

Market views of Fed rate hikes have swung sharply. We see more volatility ahead as long as central banks think they can curb inflation without crushing growth. Yields spiked before easing after the ECB raised rates by 0.5% last week. We expect it to pause hikes before the Fed as the e...

Energy inflation could be volatile. The energy supply situation is particularly dire due to the proximity of the Ukraine crisis. Consumer prices could stay hot well into the winter — and many investors appear unprepared. By Thanos Bardas, PhD; Olumide Owolabi; &...

Even though I expect reported inflation to remain uncomfortably high through at least the end of this year, it's becoming clear, on the margin, that the inflation dynamics are improving for the better. A strong dollar has almost always coincided with weak commodity prices, but we saw ...

The revised long-term outlook projects an annualized return of 4.9%. The current risk premium forecast for GMI suggests that multi-asset-class strategies overall will generate lower returns relative to results posted in recent years. Combining forecasts via several models may prov...

Vanguard Short-Term Inflation-Protected Securities ETF ( VTIP ) - $0.6849 . 30-Day SEC Yield of -1.32% as of June. 29. Payable Jul 07; for shareholders of record Jul 05; ex-div Jul 01. For further details see: Vanguard Short-Term Inflation-Protected Securities ET...

Commodities (used in the production of goods) are considered a leading indicator of inflation. Recessions are a normal corrective phase of the economic cycle, but politicians, central banks, most financial advisors, and economists never see them coming. Central bank policies can h...

Earnings for the S&P 500, according to Howard Silverblatt’s work at S&P, are expected to rise 7.7% in 2022. Growth stocks were grossly overvalued going into that bear market and they took the brunt of the damage. Real estate did well last week with rates falling bac...

In a more fractured world, we believe governments and corporate decision-makers will increasingly focus on searching for safety and building resilience. Looking forward, rather than reaching for yield, we believe that investors will be reaching for resilience in their portfolio constr...

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...