Market uncertainty could lead to bond market ‘fall-out’

00:00 Speaker A

we we don’t know what the impact is on the macro because we don’t know how long the war lasts. We don’t know how long the oil disruption lasts. So when as an investor Rob, your clients come to you and they ask you, you know, how do I navigate that? What do you tell them?

00:15 Rob

That’s a great question.

00:19 Rob

So when you look at what’s going on with oil, obviously sitting around 100. Um, obviously very, very inflationary and that comes out many different ways. Um, from a Fed perspective, what are they going to do in July? I don’t think they’re going to do anything in in March, but in July are they going to pull back uh rates because of that? Maybe. Um, inflation could that affect and have a negative effect on the bond market? Uh, well, you’re seeing that right now, right? The yield uh went up from 39 to 42, bond values dropped. and that’s happening because the bond market is signaling inflationary pressures due to this oil. So, as this market continues, you could see fallout in the bond market. You could see bond investors, the 60 40 getting nervous, moving out of bonds, which would be an error. But they could see that. And on the equity front, that coupled with what’s going on in in Big Tech, uh, the investor doesn’t know where to hide right now and the last thing that the investor wants to do or we’re telling him, don’t do, don’t be emotional. We will get through this, but you got to ride out the storm and maybe put money to work where markets are dropping.