Thoughtful Money with Adam Taggart Bonds Trading At A Bargain Right Now? | Jim Masturzo
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Aug 19, 2025 Jim Masturzo, CIO of Multi-Asset Strategies at Research Affiliates, champions a contrarian bullish outlook on bonds, forecasting a unique opportunity for growth in the next 3 to 5 years. He discusses why the market is overly bearish, how tariffs and inflation impact economic dynamics, and predicts U.S. Treasuries will remain a safe haven despite reduced foreign purchases. Additionally, Masturzo highlights emerging market equities, advocating for ETFs as a safer investment strategy while navigating economic uncertainties and risks in private credit.
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Treasuries Still The Global Safe Haven
- The US treasury remains the deepest, most liquid safe-haven asset and is unlikely to be displaced despite reduced foreign purchases.
- Dollars remain essential for trade and reserves, so treasuries retain global demand in crises.
Diversify Into Emerging Markets
- Diversify beyond US equities into emerging markets and other undervalued regions to play offense amid US valuation risks.
- Use regional or broad EM ETFs if you lack stomach for single-country volatility.
Specific EM Markets Offer Value
- Several individual EM markets (e.g., Brazil, Turkey, parts of Eastern Europe) trade far cheaper than the US and offer meaningful upside from mean reversion.
- EM valuations are attractive even after recent rallies and deserve active consideration.