Episode 343: Musings On Interest Rates And History, Fallacious Magic Mean Reversion, Inverse T-Bond Funds And Target Date Fund Glide Paths
Risk Parity Radio
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Navigating Interest Rate Predictions
The chapter scrutinizes the fallacy of predicting interest rates based on historical trends, emphasizing their fluctuation in response to economic cycles. It discusses the irony of believing in the predictability of interest rates while recognizing the unpredictability of the stock market. Recommendations are made to build portfolios independent of interest rate predictions, with managed futures funds like DBMF proposed as a more stable approach, contrasting with the speculative nature of products like TBT.
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