2024-02-20 01:53:21 ET
Summary
- The PIMCO 15+ Year U.S. TIPS Index is highly sensitive to changes in real interest rate expectations, and surging stocks have undermined rate cut bets, weighing on the ETF.
- This marks a significant reversal in the trend seen over recent years and potentially reflects overly optimistic expectations of growth and equity returns.
- The LTPZ has the potential for significant upside if growth optimism reverses as short-term inflation expectations rise and cash flow prospects for TIPS exceed those of stocks.
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For further details see:
LTPZ: The Stock market Bubble Raises The Stakes For TIPS