Bonds Showing Best Value in 15 Years: Voya's Reinhard

The video discusses the current value of bonds, highlighting their best value in 15 years with positive real yields. It explores the correlation between stocks and bonds, suggesting a return to normalcy. The video also examines market dynamics, fundamentals, and the impact of the US and Japan's economic policies. It predicts a decline in inflation and a potential bond rally following the Fed's interest rate cycle. The duration curve is analyzed, showing favorable conditions for investors. Finally, the video considers the correlation between bond and stock rallies, noting current market sentiment and technicals.

What is the current real yield on inflation-indexed securities if held to maturity?

• 4.5%

• 3.5%

• 2.5%

• 1.5%

What is a key challenge in determining the value of bonds?

• Identifying the best time to sell

• Balancing technicals and fundamentals

• Understanding global stock markets

• Predicting the exact inflation rate

What is the expected trend for inflation over the next few quarters?

• It will fluctuate unpredictably

• It will rise significantly

• It will remain stable

• It is likely to fall

What happens to a 30-year treasury if yields increase by 50 basis points?

• Loss of 13%

• Gain of 3%

• Loss of 3%

• Gain of 13%

What is the current sentiment towards owning stocks?

• Not necessarily favorable

• Extremely unfavorable

• Neutral

• Highly favorable