I came across this 90 second video where Wharton Finance professor Jeremy Siegel talks about how he expects the interest rate on bonds and inflation to significantly rise over the next several years.
Video: Jeremy Siegel and the Inflation on Bonds
- Here are some of the key points he discussed:
- [0:20] The people who get hurt the most are long-term bond holders
- [0:42] Long-term bond holders are the ones that are going to be paying for the battle against Coronavirus, in terms of the diminishment of their purchasing power
- [1:19] Siegel thinks that this will be a historic turning point
Long-term bonds have a maturity period of more than 15 years and typically pay a higher interest rate. They have traditionally been used to help reduce risk.
If you’re concerned about investments tied to the bond market and would like to discuss alternate strategies, give us a call @ 801-465-6990.
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