Search Results for: TIPS

Gold Price vs. TIPS 10-Year Yield Falling gold prices could warn a bottom of U.S. real yields. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 and Nasdaq Composite Forward P/E vs. U.S. 10-Year TIPS Yield This chart suggests the good correlation between stock multiple and U.S. real yields (inverted). Image: BCA Research

Gold Price vs. U.S. 5-Year TIPS Yield The price of gold and U.S. 5-year TIPS (inverted) continue to track each other. Generally, when the U.S. 5-year TIPS yield goes down, gold goes up. Image: The Daily Shot – The Wall Street Journal

5-Year TIPS Yield (U.S. Real Rates) vs. Gold Generally, when the U.S. 5-year TIPS yield goes down, gold goes up. Image: The Daily Shot – The Wall Street Journal

Correlation of VIX with U.S. 10-Year TIPS Yields The correlation of the VIX with U.S. 10-year TIPS yields has turned negative, as it was during the dot-com bubble burst, the Great Financial Crisis, the European debt crisis,… Image: Goldman Sachs Global Investment Research

Break-Even Inflation Rate On 10-Year TIPS and Fed Rate Cut (Hike) If inflation expectations continue to fall or remain low, the Fed could probably cut rates further. Image: Gavekal

When Treasury Inflation-Protected Securities (TIPS) Outperform? The chart shows that Treasury Inflation-Protected Securities (TIPS) usually outperform regular Treasuries when the 10-year breakeven inflation rate is below 2%. The 10-year breakeven inflation rate is a market-based measure of expected inflation over the next 10 years. Image: Movement Capital LLC

U.S. 10-Year Real Yields – Year-to-Date Changes Since 1998 U.S. 10-year real yields (TIPS) hit all-time low and are falling at their fastest pace on record. Image: Arbor Research & Trading LLC

Inflation Assets vs. Deflation Assets The leadership remains deflationary, and the laggards remain inflationary. Deflation assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield. Inflation assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy

Deflation Assets vs. Inflation Assets The leadership is still deflationary, and the laggards are inflationary. Deflation Assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield.Inflation Assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy