With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.
Topics covered include:
- David's business and investment philosophy
- How bond funds have performed in 2021
- Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management Company
- How to invest in China bonds
- Why owning bonds is cheaper and more effective at hedging stock market losses than put options
- How covered call strategies work
- How to decide on your allocation to bonds versus stocks
Thanks to Mint Mobile) for sponsoring the episode.
For more information on this episode click here).
Show Notes
What I think, not what I thought – Jason Fried)
Why in the World Would You Own Bonds When… – Ray Dalio)
Explainer: Foreign access to China’s $16 trillion bond market – Reuters)
The True Cost of Hedging S&P Downside - Movement Capital)
Revisiting Covered Calls and Protective Puts: A Tale of Two Strategies – Bryan Foltice)
Pathetic Protection: The Elusive Benefits of Protective Puts – Roni Israelov)
Related Episodes
302: Investing Is Not Knowing)
255: With Interest Rates Falling, Why Do You Own Bonds?)
225: How To Invest in Bonds)
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