If you are near retirement and have already maxed out equities because the equity market has been strong, it is a good time to move out because you cannot suffer another 20% drop.
Speaker states inflation is the problem, leading to potential demand destruction and lower GDP growth. He sees interest rates coming down and "bonds as potentially the better play in the near term." Anticipated economic slowdown (demand destruction) and a coordinated Fed/Treasury effort to lower rates would be favorable for bond prices. Positive for bonds relative to equities in the near term. Inflation proves more persistent than expected, forcing the Fed to maintain or hike rates despite growth concerns.
Speaker states inflation is the problem, leading to potential demand destruction and lower GDP growth. He sees interest rates coming down and "bonds as potentially the better play in the near term." Anticipated economic slowdown (demand destruction) and a coordinated Fed/Treasury effort to lower rates would be favorable for bond prices. Positive for bonds relative to equities in the near term. Inflation proves more persistent than expected, forcing the Fed to maintain or hike rates despite growth concerns.