Inflation Picking Up

The Fed has targeted a 2% inflation rate, but, even with an expanding economy, inflation has remained below this level. Recently, however, the spread on traditional Treasury bonds versus TIPS (Treasury Inflation Protected Securities) has exceeded 2%, suggesting that investors expect inflation to hit this level in the near future. See article here, WSJ.

Cost Matters

Research continues to show that low fees are the most important driver of a fund's future alpha. Vanguard has a nice piece describing their findings. Click here to see the article.