This week's blogpost - https://bahnsen.co/4l4j6C2
Understanding Duration: Impact on Bond Investment Strategies
In this episode of the Thoughts on Money Podcast, Trevor Cummings and Blaine Carver delve into the concept of duration and its significance in bond investments. They discuss how duration affects bond prices in response to changes in interest rates and offer practical examples to illustrate. Additionally, they reflect on the different investment scenarios and strategies during 2020 and 2025, emphasizing the importance of adjusting investment strategies based on current interest rates and valuations. With insights on balancing risk and opportunity, the episode aims to make a traditionally complex and 'boring' financial topic more accessible and relevant.
00:00 Welcome to the Thoughts on Money Podcast
00:44 Understanding Duration: A Key Concept in Bonds
01:08 The Lemonade Stand Analogy
03:22 Duration and Interest Rates: A Deeper Dive
10:09 The Impact of COVID-19 on Bond Markets
13:13 The Urgency of Reallocating Bonds in 2020
18:08 Interest Rates and Bond Prices: A Changing Landscape
18:50 Understanding Duration and Leverage
20:14 Investment Strategies in a High-Rate Environment
24:32 The Importance of Historical Context in Investing
29:05 Practical Advice for Portfolio Management
35:59 Conclusion and Listener
Links mentioned in this episode:

http://thoughtsonmoney.com
http://thebahnsengroup.com

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