RL211 — Long-Term Treasuries: Fed Rate Cuts, Risks & Recession Signals

Retirement Lifestyle Show with Roshan Loungani, Erik Olson & Adrian Nicholson

In this episode, Roshan and Adrian discuss the performance of long-term treasury bonds. They explore the factors that have led to the underperformance of long-term treasuries compared to large-cap stocks. They also discuss the correlation between stocks and bonds and the impact of the Federal Reserve's rate cuts on the bond market. The conversation delves into the potential opportunities and risks associated with long-term treasuries and corporate bonds. They also touch on the importance of duration in fixed income investments and the potential impact of a weakening economy on treasuries. The episode concludes with a discussion on recession indicators and the importance of doing thorough research.

Keywords: long-term treasuries, small-cap stocks, performance, correlation, Federal Reserve, rate cuts, opportunities, risks, duration, fixed income, weakening economy, recession indicators, research, financial advisor

Chapters

00:00 Introduction and Overview

01:39 The Performance of Long-Term Treasuries

03:14 The Correlation Between Stocks and Bonds

05:17 The Impact of Federal Reserve Rate Cuts

08:55 Opportunities and Risks in Long-Term Treasuries and Corporate Bonds

09:13 The Importance of Duration in Fixed Income Investments

13:25 Recession Indicators and the Unique Circumstances of the Current Economy

18:57 The Importance of Research and Consulting with a Financial Advisor

29:35 Conclusion