VGIT: Eyes On Inflation Mandate With Readings Still Hot

Valkyrie Trading Society Investing Group Leader Follow Summary Vanguard Intermediate-Term Treasury ETF is at the confluence of long-term and short-term rate speculation, both with upsides. As far as low-risk investments go, VGIT is at risk of being hobbled by expectations and the actual materialisation of long-term structural inflation factors and the upcoming rate decision. With prices going up substantially for electricity, consumer electronics, and then energy, key elements of the consumer wallet are inflating, risking anchoring of expectations at higher levels. Issues are likely worse now than they were in that 2022-2024 period on the supply side, so we are inclined to agree that a similar rate policy is likely in order. For duration bets like VGIT, this is unfavourable. Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » Torsten Asmus/iStock via Getty Images As discussed in previous coverage , the Vanguard Intermediate-Term Treasury ETF ( VGIT ) tracks the Bloomberg US 3-10 year Treasury Bond Index - meaning containing bonds with a 3-10 year remaining years in maturity. It is market vale This article was written by Valkyrie Trading Society 5.61K Followers Follow The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.