23min chapter

The Compound and Friends cover image

The Trillion Dollar Question

The Compound and Friends

CHAPTER

Yields Behavior and Risks of Cash vs. Duration Risk

The speakers discuss the behavior of yields and the risks associated with investing in cash versus taking duration risk. They debate whether it is a mistake to opt for cash when yields go up and emphasize the importance of market timing. They also draw a comparison between the Federal Reserve's approach to communicating and the Avengers end game movie, highlighting the reluctance of the Fed to reveal its plans due to potential market reactions.

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