The Long Term Investor Rethinking Bonds: How to Strengthen Your Retirement Portfolio in Today’s Market With David Braun (EP.180)
Nov 27, 2024
David Braun, a seasoned U.S. Generalist Fixed Income Portfolio Manager at PIMCO, shares his 30 years of investment wisdom. He discusses the vital role of core bonds in retirement planning, highlighting how rising yields present new opportunities. The conversation shifts to why active management is crucial over passive strategies in today's market. Braun also addresses the implications of growing U.S. national debt on bond yields and risk profiles, encouraging a reevaluation of fixed income strategies for a changing economic landscape.
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Bond Funds vs. Individual Bonds
- Utilize bond funds over individual bonds for better diversification and liquidity.
- This approach offers advantages like professional management and access to a wider range of bonds.
The Role of Bonds
- Bonds serve as capital preservation, income generators, and historically, portfolio insurance.
- However, recent years have challenged these roles, making it crucial to adapt strategies.
Active vs. Passive Bond Management
- Active bond management outperforms passive strategies due to market inefficiencies.
- This contrasts with large-cap equities where passive often prevails.