Inflation Takeaways: PPI/CPI

August PPI and CPI and Fed Survey Update… QE Taper Coming late ‘21   Boy did we get the tale of two reports from the August inflation data. The PPI report was modestly higher than expectations whereas the CPI report was modestly lower… so which one is right?...

Delta Variant & Flattening Yield Curve

Is the risk off move just a pause in the market after an incredible two quarters to start 2021, or something sinister brewing under the surface? The equity market’s reaction Monday (7/19) showcased fear of the Delta variant derailing the economic recovery as new cases...

It’s Hard Out Here for a Bond Investor

The Q1 Scorecard Source: Bloomberg (As of 3/31/21) TLT = iShares 20+ Year Treasury Bond ETF ($12bn AUM); AGG =  iShares Core U.S. Aggregate Bond ETF ($87bn AUM); LQD = iShares iBoxx $ Investment Grade Corporate Bond ETF ($41bn AUM). All AUMs are as of 5/12/21. While...

Inflation vs. Deflation: Tug of War of the Decade

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Milton Friedman Friedman’s quote above is historically accurate although since the 1990s and...
Inflation Protection…Are TIPS the Answer?

Inflation Protection…Are TIPS the Answer?

One question we’ve gotten a lot recently is how can investors position portfolios if we see some inflationary pressure… are Treasury Inflation-Protected Securities (TIPS) a good idea? What are TIPS? Straight from the Treasury… “The principal of a TIPS increases with...