cover of episode Financial Myth #1: If Interest Rates Rise, Bonds Will Lose Money

Financial Myth #1: If Interest Rates Rise, Bonds Will Lose Money

2019/11/12
logo of podcast Stay Wealthy Retirement Podcast

Stay Wealthy Retirement Podcast

Chapters

Explains the inverse relationship between bonds and interest rates, highlighting how bond prices rise when interest rates fall and vice versa, using historical context from the 1980s.

Shownotes Transcript

Interest rates are at record low levels.

The bond market in an almost 40-year year bull market.

It's very possible you have heard some version of the following statement:

"If (or when) interest rates rise, bonds will lose money."

If you're a listener of this retirement podcast, you might know that it’s not entirely incorrect.

Bonds and interest rates do have an inverse relationship.

But it's complex.

Learn what really happens to a long-term bond portfolio if we enter a rising interest rate environment.

The answer may surprise you!

For all the links and resources mentioned in this episode, visit www.youstaywealthy.com/57)

DISCLAIMER: This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. This podcast is not engaged in rendering legal, financial, or other professional services