Episode 57: The value of stock equity and bond equity went down

Holding onto mortgage-backed securities is like anchoring your vessel and weathering the storm.You can either watch the waves rise and fall as you mark to market, or you can hunker down and hold to maturity and you could switch mid-process.As the big money seeks safety in uncertain times, they may flock to treasuries like sailors seeking a sheltered harbor.This could cause treasury yields to drop and prices to rise, while stocks may suffer as investors shift their focus to bonds.The value of both stock equity and bond equity plunged.So financial gurus and mom-and-pop advisors like me advised investors to shift their focus to cash.Once the Fed is done hiking rates, it will become crystal clear what the cost of funds will be.#KPTalks #mortgagebackedsecurities #holdingtomaturity #treasuries #flighttosafety #stocks #bonds #gotoCash #focustocash #stockequity #bondequity #yields