On February 9th, Litman Gregory hosted a webinar with Chief Investment Officer Jeremy DeGroot to address client questions on the economy, financial markets, and our outlook for 2022. Senior Advisor Bill Thompson moderated the discussion, and together they provided an update on the key macroeconomic risks our investment team is monitoring, including COVID-19, US fiscal and monetary policy, and inflation.
Bill then invited Senior Research Analysts Jack Chee and Kiko Vallarta to join the discussion and answer questions about Litman Gregory’s sustainable and ESG investing philosophy, as well as our research process and views in this area.
The webinar slides can be viewed here.
Our Perspective and Strategy During Turbulent Times
It’s been a difficult year, to say the least. As September comes to a close, we’ve weathered a disappointing month in the financial markets after a relatively benign August and a strong July. As is the case in any bear market, investors are braced for more to come. In this post we provide a summary on the forces that brought us here, how we’re responding, and what to expect going forward.
With Inflation Rising, Why Have Inflation-Protected Bonds Declined?
As the outlook for inflation turned less “transitory,” treasury inflation-protected securities became interesting to many investors. But these bonds have shown they aren’t immune to broader bond market declines, leaving investors to wonder, “How can my inflation-protected bonds be down when inflation is on the rise?” In this post we explain how these bonds are impacted by different market variables, including inflation, and why we believe they still deserve a place in our client portfolios.
I Savings Bonds Currently Offer a Generous Yield
With current yields over 9%, Series I Savings Bonds seem to offer a "free lunch". These bonds are issued by the U.S. Government and pay interest linked to current inflation rates, making them an attractive option for most savers and investors.