Timothy Sumer

2022 has seen one of the worst bond crash ever, and it’s interesting that when this happens to equity people say you should buy it because it’s a bargain, but you never hear that about bonds. In this video, I take a look at what’s been happening to government bonds, I also discuss whether now is a good time to buy bonds or not and then finish off by showing you what I'm doing in my own “fun” portfolio. 📰 Sign up to our free weekly market roundup to get news and views about what's going on in the stock market and wider economy If you want to become a better investor then why not become a pensioncraft.com member? To find what we offer and how you can join our friendly community click here Timestamps 00:00 Introduction 00:29 Reasons 01:29 Bond Losses 07:27 Recession 09:39 Higher Yield Now 11:30 Sticky Inflation 13:25 Growth Suprise 15:20 What I'm Doing 16:47 Conclusion This Is What Else PensionCraft Offers: 💡 Book a coaching session with Ramin so he can answ

America's central bank, the Federal Reserve, can inject cash into the financial sector to prevent breakdowns during emergencies. One way it does so is through the large-scale purchase of bonds. The central bank has racked up nearly $9 trillion in bonds to calm investors during past crises. The Fed is saying it will soon dial back this program. The pace at which the Fed tightens monetary policy may create substantial market headwinds. Members of the Federal Reserve are debating how quickly to reduce the central bank’s portfolio of bonds, without starting a recession. Heading into the second quarter of 2022, the balance of Federal Reserve’s assets is almost $9 trillion. The majority of these assets are securitized holdings of government debt and mortgages. Most were purchased to calm investors during the subprime mortgage crisis in 2008 and 2020′s pandemic. “What’s happened is the balance sheet has become more of a tool of policy.” Roger Ferguson, former vice chairman of