If Bonds are safe, why are mine losing value?
Crashes And Taxes Podcast · Rebecca Walser
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
In the last few weeks, the equity market has experienced massive volatility. While we're seeing it play out in the stock market, the root of this volatility is our interest rates and how The Federal Reserve is navigating the current pandemic economy.
The Fed has the difficult job of stimulating the economy to avoid a recession, while also walking the tightrope of reopening without creating more inflationary pressure.
Bond prices have gone up because their value is defined by current interest rates.
Investors are rapidly getting out of the stock market and parking their gains in safer buckets. Equity market volatility is the result of this convergence of conditions and circumstances.
What do these conditions mean for the value of your portfolio? In this environment, how can we guarantee safety and market-based growth in a volatile stock market?
In this episode, I talk about why the equity market is so unstable right now, the dangers of stimulating the economy as we reopen, and the safest place to put your money right now.