40. Preparing for Rate Cuts: What are Bond Funds?
Market MakeHer Podcast
Bond Prices, Yields, and Capital Appreciation
Jess explains inverse bond price-yield relationships and how falling yields can boost bond ETF prices.
What Is The Bond Market and What Are Bond ETFs?
CPI is “cooling off” which means inflation is trending closer to the Fed’s target, which means a rate cut MAY be in our future! What does that mean? Well if the Fed, you know, good ol "Papa Powell" who we keep talking about, well if they actually go through with cutting rates this is what happens. Interest rates for things like home loans get lower, but that means those high yield savings account rates also get lower. So where do you stash your cash and still get those great returns? Bonds. More specifically, we're looking at Bond ETFs.
We've talked about different types of low risk investing on Ep. 31 about Brokerage CDs but we want y'all to know about all the ways you can make your money make money!
Side Note
Check out Jessica Inskip's most recent appearance on the Schwab Network Episode where her worlds collide.
The Bond Market
Ok, so apparently there is not only a stock market, but also a Bond market. Where do we begin?
Need our listeners to know a few things:
You cannot time market, but you can prepare
We are not financial advisors, investing is personal. This is not that.
We are here for educational and information purposes only.
OK, let’s talk about what happened, and define the SEP - series of economic projections.
Most recent: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240612.pdf
Different ways to lock in rates:
CDs
Treasurys
Municipal Bonds
Corporate Bonds
Bond Funds
https://www.ishares.com/us/strategies/bond-etfs/build-better-bond-ladders
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Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.
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Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a licensed financial advisor before making investment decisions.
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