- We have been bullish on TIPS since the March 2020 selloff, reiterating our position more recently following the February selloff. Despite the strong gains seen, we remain bullish.
- SCHP appears to be consolidating around its all-time highs, with the hold above the March 2020 highs, suggesting we have moved into a permanently higher trading range.
- Investors are rightfully beginning to question the willingness of the Fed to hike rates even as inflation soars given the extreme level of government debt.
- We fully expect the SCHP to underperform gold in the event that inflation pressures continue to rise, but note that for more risk averse investors, volatility-adjusted returns may prove to be just as strong.
For further details see:
SCHP: A Low Volatility Alternative To Gold