Money For the Rest of Us

Why in the World Do You Own Bonds?

03.31.2021 - By J. David SteinPlay

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With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.

Topics covered include:David's business and investment philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocks

Thanks to Mint Mobile for sponsoring the episode.

For more information on this episode click here.

Show Notes

What I think, not what I thought – Jason Fried

Why in the World Would You Own Bonds When… – Ray Dalio

Explainer: Foreign access to China’s $16 trillion bond market – Reuters

The True Cost of Hedging S&P Downside - Movement Capital

Revisiting Covered Calls and Protective Puts: A Tale of Two Strategies – Bryan Foltice

Pathetic Protection: The Elusive Benefits of Protective Puts – Roni Israelov

Related Episodes

302: Investing Is Not Knowing

255: With Interest Rates Falling, Why Do You Own Bonds?

225: How To Invest in Bonds

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