Did All the Usual Inflation Hedges Fail Including TIPS Bonds? | What Goes into the Unemployment Numbers?

This week Derek Moore tries to answer the question of why things like TIPS Bonds (Treasury Inflation Protected Securities) down YTD are even though inflation is up. Plus, golds response to inflation. Finally, can we have a recession with low unemployment plus why Bitcoin thus far has not been an inflation hedge despite claims otherwise.

Why TIPS bonds (Treasury Inflation Protected Securities) were down YTD even though inflation was up

Duration risk and interest rate risk for bonds

TIPS bonds had negative yield to maturities earlier in the year

What about gold as an inflation hedge this year?

Bitcoin has proven not to be a good inflation hedge in its first test

Bitcoin has traded more like a risk-on asset

What questions to BLS surveys use to determine if you are employed or unemployed

What is the labor force participation rate?

Can we have a recession with low unemployment?

Mentioned in this Episode:

Contact Derek Moore derek.moore@zegafinancial.com

ZEGA Financial www.zegafinancial.com

BLS Unemployment – How They come up with unemployment number https://www.bls.gov/cps/cps_htgm.pdf

Marcel Benjamin explains in detail how TIPS bonds work https://podcasts.apple.com/us/podcast/tips-inflation-protected-bonds-explained-interest-rate/id1432836154?i=1000535445537

Marcel Benjamin’s deep dive on High Yield Bonds plus what are Zombie companies https://brokenpiechart.libsyn.com/marcel-benjamin-high-yield-bonds-explained-what-are-zombie-companies