Thoughtful Money with Adam Taggart Jim Grant: A Multi-Decade Bond Bear Market Lies Ahead
37 snips
Feb 16, 2025 Jim Grant, founder of Grant's Interest Rate Observer and a leading authority on interest rates, joins Mike Preston and John Lodera from New Harbor Financial. They discuss the end of a four-decade bond bull market amid persistent inflation and disruptive U.S. policies. Grant emphasizes that higher interest rates are likely here to stay, while exploring the risks tied to U.S. public finances and auction failures. The trio also examines the appeal of gold versus bonds and how to navigate the evolving investment landscape during uncertain economic times.
AI Snips
Chapters
Transcript
Episode notes
Bond Market Shift
- A 40-year bond bull market likely ended around 2020-2021.
- This suggests a multi-decade bond bear market may have begun.
Inflation Drivers
- Inflation reflects excessive government spending and borrowing.
- Imputed housing rental costs significantly contribute to this inflation.
Fed Policy Error
- The Fed's 50 basis point cut was ill-advised, showing poor risk management.
- They didn't anticipate Trump's election or its impact on market sentiment.