Quadratic Interest Rate Price, Forecast, Insider, Ratings, Fundamentals & Signals

During a recent appearance at the Economic Club of New York, JPMorgan Chase JPM CEO Jamie Dimon expressed concerns that the U.S. economy could witness challenges similar to those of the 1970s. He indicated the likely resurgence of stagflation — a condition characterized by low growth combined with high inflation — which could complicate inflationary risks currently being faced by the U.S. economy, as quoted on a Yahoo Finance article.

The Quadratic Interest Rate Volatility and Inflation Hedge ETF is breaking out to the upside amid falling real yields and a steepening yield curve. IVOL should benefit from the ongoing deterioration in government finances, which should drive real yields lower across the board and a normalisation of the yield curve. The main risk comes from the ETF underperforming its stated objectives.

The U.S. economy has been experiencing sticky inflation, higher rates and slower growth, meaning a stagflationary scenario.

The Krane Shares Trust - Quadratic Interest Rate Volatility and Inflation Hedge ETF is a unique exchange traded fund. The ETF contains two main risk factors, namely a long position in US TIPS bonds and a bet on the normalization of the 2s10s curve after a historic inversion. The fund's performance is expected to improve as the Fed maintains a neutral stance and the 2s10s spread narrows.

With U.S. inflation appearing stubborn, this inflation-centric ETFs may come to investors' rescue.

Hi! In this week's ETF Wrap, you'll see the spot in markets investors liked in August as ETF flows trended below the historical average in a down month for stocks.

An improving U.S. economy can push up inflation, going into 2024.

The Quadratic Interest Rate Volatility and Inflation Hedge ETF is a contrarian trade that bets on 2-year US bond yields falling relative to 10-year inflation expectations. The IVOL ETF holds a portfolio of inflation-linked bonds and options to hedge against a steepening yield curve. Speculators are heavily betting on further upside in 2-year yields, but I strongly expect 2-year yields to fall below long-term inflation expectations in the next 12-24 months.

Over the past year, inflation has become a pressing concern for many Americans. There has been a spike in everything from mortgage and interest rates on vehicles to everyday prices of consumer goods and food.

The Quadratic Interest Rate Volatility and Inflation Hedge ETF is a good buy due to the inverted bond yield curve and high yield on inflation-linked bonds. IVOL can benefit from yield curve steepening or declining real bond yields and offers a hedge against a decline in equity market risk. Two main macroeconomic scenarios that could drive a recovery in IVOL are a sharp drop in short-term rates due to recession or a recovery in inflation expectations.