The US Treasury doubled its cap on long-term bond buybacks from $2 billion to $4 billion per operation, causing the 30-year Treasury yield to drop by 9 basis points temporarily. However, this yield decline reversed within a day. Treasury Secretary Bessent has requested Federal Reserve support, which depends on Fed Chair Kevin Warsh's upcoming Jackson Hole speech. Warsh's plan to reduce the Fed's balance sheet with a focus on short maturities may push long-term yields higher, counter to the Treasury's goals. Despite these bond market moves, the author remains bullish on US equities, favoring variable returns from stocks over fixed bond coupons amid volatile borrowing costs.
SPDR offers two ETFs tracking the S&P 500: the well-known SPY and the lesser-known SPYM. While both hold the same stocks in the same proportions and pay similar dividends, SPYM charges only 0.02% in fees compared to SPY's 0.0945%. This makes SPYM a c...
For investors near retirement with a 20-year horizon, Vanguard's S&P 500 ETF (VOO) is a better choice than the Vanguard Total Stock Market ETF (VTI). VOO offers higher dividend income, a stronger long-term return track record, and lower risk due to i...
SCHD has outperformed the S&P 500 in 2026 by acting countercyclically during the tech and semiconductor downturn, thanks to its sector mix and annual rebalancing. The fund's removal of Broadcom in March 2024, initially seen as risky, positioned it we...
