Bonds Already in 'Mini' Bear Market, Schwab's Jones Says

The video discusses the current state of the bond market, identifying it as a mini bond bear market due to unusual drawdowns. It explores strategies for bond duration in a rate hike cycle, suggesting a shift towards longer durations as the yield curve flattens. The discussion also covers the potential peak of the current rate cycle, driven by synchronized global monetary policies. The video highlights economic slowdown indicators and their impact on inflation, emphasizing the lagging nature of inflation. Finally, it addresses market psychology, focusing on inflation expectations and the sensitivity of consumers to gasoline prices.

What is considered a bond bear market according to CFA level 2A?

• A 5% drop in bond prices

• Three consecutive months of negative returns

• A 10-year decline in bond values

• A 1% increase in interest rates

What strategy is being advocated as the yield curve flattens?

• Reducing bond duration

• Investing in 30-year bonds

• Avoiding all bond investments

• Increasing bond duration

What economic indicator is mentioned as starting to roll over, indicating a slowdown?

• Housing prices

• Stock market index

• Unemployment rate

• Global PMI's

Which factor is highlighted as a psychological trip point for inflation concerns?

• Interest rates

• Gasoline prices

• Stock market volatility

• Unemployment rates

What is the expected impact of fiscal stimulus fading on the economy?

• Stock market boom

• Higher interest rates

• Economic slowdown

• Increased inflation