"It's kind of like the track runner that's getting started, gets his feet in the blocks, and then tumbles and falls down. That's pretty much what bonds are this year."
Not only is Clint's imagery very descriptive at the outset of this episode (he must've aced high school English class), but it's also quite accurate in terms of how the bond market has fared to open 2022. Many investors have bonds as at least a small part of their portfolio's holdings. But while bonds are typically viewed as a less risky investment with less volatility than things like individual stocks, they have certainly not been above the rough road in the markets, more broadly speaking, to open the year.
In this episode, Clint and Nate cover some important ground on bonds – why bonds go down in value when interest rates go up, why they've been a hot topic so far this year, and why the duration of bonds matters. As always, Clint comes prepared with a chart on the year-to-date returns of bonds, a link which you can also find in our links section below.
CHART: Year-to-Date Bond Returns
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