$145 Trillion Is BORING? - Bonds Explained
from It's All Money Hosted by 707 Media
The global bond market is nearly three times the size of the US stock market, yet many don't know how it actually works. Sonoma Wealth Managing Principal Chris Sipes joins Marketing Director Dano Weir this week on It's All Money to explain the major types of bonds, how prices and yields move together, and why the current rate environment matters for mortgages, 401(k)s, and retirement income. In this episode: • Defining what a bond actually is and detailing the massive size of the total market. • Detailing the 4 types of bonds available and what scenarios they apply to. • Detailed explanation of how bonds actually work. • Where could bonds fit in a portfolio, and why do some investors consider them "boring"? Full video available on our YouTube Channel: https://youtu.be/ifRh7uh9xUI Book your Wealth Analysis right here: https://sonomawealthadvisors.com/book-your-wealth-analysis CHAPTERS 0:00 Cold Open: Don't Turn Off The Bonds Episode Yet 0:36 Welcome To It's All Money: Why Bonds Feel Boring 1:22 What Is A Bond, And Why Does The Bond Market Exist? 2:30 How Big Is The Bond Market, Really? 6:03 Do You Already Own Bonds Without Knowing It? 7:53 The Different Types Of Bonds 11:35 Which Bond Type Fits Your Tax Bracket 14:24 What Is A Junk Bond? 16:26 How A Bond Actually Works: Coupons Explained 21:04 Why Bond Prices Move Opposite Interest Rates 24:50 Bonds Vs. Stocks: Predictability And Risk 26:52 Why Advisors Use Bonds For Diversification 29:39 Reading The Yield Curve 36:23 Closing Thoughts 38:23 Credits & Outro References: https://www.sec.gov/data-research/statistics-data-visualizations/us-households-participation-capital-markets https://smartasset.com/retirement/size-of-stock-market-vs-bond-market https://www.thenationaldebt.us/basics
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