Bloomberg Surveillance Single Best Idea with Tom Keene: George Bory & Dean Curnutt
May 19, 2025
Dive into the fascinating world of bond dynamics and their impact on financial markets. Discover the critical relationship between bond yields and investor strategies focused on income and diversification. The discussion also unpacks the complexities of U.S. interest rates in a post-pandemic economy. Understand how these shifting rates influence debt structures and contribute to market volatility. It's an insightful look into the forces shaping today's economic landscape.
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Bond Yields Drive Income
- Bond yields dominate in the current environment, making income the key to bond returns.
- Holding bonds for income allows positive returns even if yields rise significantly.
Advice on Bond Investing
- Use income from bonds as your best friend when investing.
- Diversify bond durations and allow coupon income to compound over time for optimal performance.
Hold Bonds to Benefit
- Bond price changes only affect investors who sell their holdings.
- Holding bonds allows compounding returns to improve over time despite price fluctuations.