Bond Portfolios Down Year to Date | Stock Talk Podcast

Do you have losses in your bond holdings? Bond markets have declined in unison with stocks year to date primarily for one reason. The Federal Reserve has moved with historically large and fast interest rate hikes. They’ve done it at one of the fastest paces in 100 years. This after being overly easy from a monetary standpoint for years. I’ll say it. The Fed’s moves in 2022 have been unprecedented for the last 50 years. Only Alan Greenspan in 1994 comes close when he doubled rates in 12 months. See it for yourself: Given Septembers CPI, these increases should continue in November and December. Ugh.

 

We’ve talked about bonds and fixed income a couple of times over the last few years. Only 18 months ago, many investors we spoke with were worried that their fixed-income portfolios were yielding so little. We saw many prospective clients searching for higher yields in their portfolios, wanting to buy more risky credits or lengthening their maturities in an attempt to gain another quarter percent to 1% in yield. Once again, stretching for income yield in the public markets has turned out to be a very bad strategy. Click Here for More!

 

If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors: https://click2retire.com/bondportfoliosdatePB