Vanguard Long-Term Treasury ETF (VGLT)

The article discusses the trade-offs between yield and risk in the bond market, focusing on Vanguard bond ETFs. It suggests that for most investors, the Vanguard Short Term Treasury ETF offers the best balance of yield and risk, while longer-duration bond ETFs may not justify the higher price risk.

The United States experienced a mild deflation in May, according to new data from the Bureau of Economic Analysis. Click to read.

The Federal Reserve’s recent policy decision kept interest rates unchanged, continuing since July 2023. However, it announced a significant reduction in its quantitative tightening (QT) program, starting in June. QT involves selling off assets to decrease money supply and raise interest rates. This move follows massive bond purchases during the pandemic, which suppressed interest rates. While QT can help control inflation, it also reduces liquidity in the economy and can lead to higher interest rates and tighter monetary conditions. The Fed aims to avoid a repeat of the 2019 “repo crisis” caused by QT, and plans to scale back QT to $25 billion, more than half of its current rate. Related: Federal Reserve Takes Cautious Stand On Inflation, Powell Signals Preference For Rate Cuts Over Hikes Redditors Question the Effectiveness of Fed’s Decision Reddit discussions on r/stocks provided valuable insights into the Federal Reserve’s recent decision to reduce quantitative tightening (QT) and its potential impact on inflation and the economy. Redditors expressed diverse opinions, ranging from concerns about inflation to the ...Full story available on Benzinga.com

Smart Beta ETF report for GOVI

“I also suggested that the company liquidate some growth stocks and either keep the proceeds in cash or invest it in value stocks.”