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TIP

iShares TIPS Bond ETF

https://www.ishares.com/us/products/239467/ishares-tips-bond-etf

Industry

Asset Management

The fund will invest at least 80% of its assets in the component securities of the underlying index and will invest at least 90% of its assets in U.S. Treasury securities. The index includes all publicly-issued U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment-grade and have $300 million or more of outstanding face value.

Open

107.43

Mkt cap

19B

Volume

744K

High

107.73

P/E Ratio

12.10

52-wk high

111.06

Low

107.37

Div yield

0.02

52-wk low

104.19

A new poll shows declining approval for President Biden's economic policies, with inflation being a major concern among voters. Approval of Biden's handling of the economy dropped to 39%, with 68% disapproving. Economic issues, particularly inflation, are key voter concerns for the next presidential election. Inflation rates remain above the Federal Reserve's 2% target, challenging hopes for reversed rate hikes. Former President Trump is preferred over Biden in handling the economy, with 43% trust compared to Biden's 35%. The iShares TIPS Bond ETF (TIP) is mentioned with a slight increase in its last trade.

Portfolio Pulse from Shanthi Rexaline

May 13, 2024 | 2:07 pm

Former Treasury Secretary Larry Summers warned that a rate cut in June could be a 'dangerous and egregious error' following hotter-than-expected March inflation data. Consumer prices rose more than anticipated, with core and super core inflation rates also exceeding forecasts. Summers highlighted the risk of ignoring inflation pressures, especially with the economy growing faster than potential and short-term Treasury rates exceeding longer-term rates. This suggests the neutral rate is above the 2.6% level used by the Fed. The futures market has since adjusted, showing an 83% probability of the Federal Reserve maintaining the current rate. The iShares TIPS Bond ETF (TIP) fell 0.96% to $105.84.

Portfolio Pulse from Shanthi Rexaline

April 11, 2024 | 7:39 am

The upcoming March CPI report is expected to show a slight slowdown in month-over-month inflation but a slight increase year-over-year. Experts like Aswath Damodaran and Gene Munster express concerns over its potential impact on the market and tech stocks, respectively, while Paul Krugman sees the inflation wave as broken. The iShares TIPS Bond ETF (TIP) saw a slight increase in anticipation of the report.

Portfolio Pulse from Shanthi Rexaline

April 10, 2024 | 7:00 am

Former Treasury Secretary Lawrence Summers, in a Bloomberg interview, suggested that the neutral monetary policy rate is higher than the Federal Reserve's estimate, potentially impacting expectations for future rate cuts. Summers criticized the absence of a neutral rate target and argued against cutting rates at the upcoming June meeting, despite financial markets pricing in rate cuts based on inflation trends. The iShares TIPS Bond ETF (TIP) remained unchanged in response to these comments.

Portfolio Pulse from Shanthi Rexaline

April 07, 2024 | 2:27 pm

Despite Federal Reserve Chair Jerome Powell's hawkish stance on interest rates, bullish analyst Tom Lee predicts over three rate cuts in 2024, citing recent inflation spikes as statistical aberrations. Lee points to the significant drop in March consumer price inflation in Europe and anticipates the U.S. March inflation report to further support his prediction. Contrasting views from Steve Cohen and David Einhorn highlight the uncertainty around the Fed's rate path. The SPDR S&P 500 ETF Trust and the iShares TIPS Bond ETF are mentioned in the context of market reactions to interest rate expectations.

Portfolio Pulse from Shanthi Rexaline

April 04, 2024 | 8:28 am

Economist Peter Schiff criticizes the Federal Reserve's plan for three rate cuts this year, warning of a more severe crisis than 2008 due to 'misguided' optimism by Jerome Powell. Schiff points to rising gold prices and the CRB commodity index as indicators of inflation contrary to the Fed's expectations. He suggests that the Fed's current monetary policy is too loose and that the planned rate cuts could be a significant policy blunder.

Portfolio Pulse from Shanthi Rexaline

March 30, 2024 | 8:07 pm

Former U.S. Treasury Secretary Lawrence Summers criticized the Federal Reserve's plans to cut interest rates amidst a strong economy and high inflation. He questioned the Fed's eagerness, citing the economy's performance and the need for a higher neutral interest rate than the Fed's forecast. Financial conditions have loosened, as indicated by the Chicago Fed National Financial Conditions Index, while inflation expectations remain above the Fed's target, as shown by the 5-year breakeven rate.

Portfolio Pulse from Piero Cingari

March 21, 2024 | 8:18 pm

Economist Peter Schiff warns of rising inflation, criticizing the Federal Reserve and Chair Jerome Powell for ineffective measures. Schiff predicts inflation could reach double digits, diverging from the Fed's 2% target. The February inflation report showed an increase, and Schiff highlighted the federal budget deficit's growth. Despite these concerns, the iShares TIPS Bond ETF (TIP) experienced a slight decline.

Portfolio Pulse from Shanthi Rexaline

March 13, 2024 | 7:52 am

Larry Summers, former Treasury Secretary, commented on recent inflation data, suggesting the next Federal Reserve move could be a rate increase rather than a cut. January's consumer and producer price inflation numbers were higher than expected, challenging the notion of a 'soft-landing' for the economy. Summers highlighted the resilience of housing costs, particularly owner-occupied housing, which may not be as deflationary as previously thought. He also criticized the strict 2% inflation target and suggested the Fed should proceed with caution, noting a potential rate hike in the future.

Portfolio Pulse from Shanthi Rexaline

February 17, 2024 | 6:38 pm

Economist Peter Schiff warns of a significant risk to the stock market's record run, citing a 'false belief' about the victory over inflation. He points to a potential breakdown in long-term Treasuries and a breakout in oil prices as indicators. The yield on the 10-year Treasury note has seen fluctuations, and crude oil prices are rising. Schiff questions the claims of diminishing inflationary pressure and suggests that the Federal Reserve may need to maintain a hawkish stance, posing risks to the economy and the stock market. The iShares TIPS Bond ETF (TIP) saw a slight decrease in its latest session.

Portfolio Pulse from Shanthi Rexaline

February 09, 2024 | 8:06 am

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