In this episode of Grow Money Business Grant reviews how the markets have handled the new fed chairman’s comments about decreased transparency and commitment to fighting inflation.  He reviews how interest rates have adjusted to Warsh’s comments, the impact on mortgage rates, and how investors should be sure to monitor the duration of their bond portfolios as a result.  He also reviews an article about potential long term stock returns, and why most investors need some bonds in their portfolios at all.

 

Show Notes

[01.41] Market Update – Performance of the market in the month of July.

[04.10] Article of the Week – Behind the Balance Sheet’s article by Stephen Clapham on historical data of the U.S stocks.

[06.20] The Federal Reserve’s Communication Strategy – Grant explains how the Federal Reserve’s communication strategy is evolving under new Chair Kevin Warsh.

[15.35] Impact on financial markets – Grant shares how a less transparent Federal Reserve may increase volatility in long-term interest rates.

[21.53] Understanding Bond Behavior – Grant emphasizes the importance of understanding bond quality and duration rather than abandoning bonds altogether.

[29.36] A Bond Portfolio – Grant explains how a well-structured bond portfolio can provide the flexibility to avoid selling stocks during market downturns.

Resources

What 125 Years of Data Really Tell Us

behindthebalancesheet.substack.com/p/what-125-years-of-data-really-tell