How Bonds Perform During Rate Hiking Cycles (Answer: Not Well) | Pirates of Finance

Corey Hoffstein and Jason Buck unwind and explore the finer points of finance, such as the risk/reward of investing in bonds during hiking cycles, the $HYG Drawdown fallacy, and the "Two Times Duration Minus 1 Rule." With boatswain Jack Farley, they entertain the possibility that the global economy is headed for a "commodity supercycle," and they consider what such an environment would mean for correlations and investment styles such as CTAs (Commodity Trading Advisors). -- Follow Jason on Twitter @JasonMutiny Follow Corey on Twitter @choffstein Follow Jack on Twitter @JackFarley96 -- Timestamps: (00:00) Corey's Conference (5:40) Cathie Wood's $ARKK Call (8:30) The High-Yield ($HYG) Drawdown Fallacy (14:00) Bond Returns During Rate Hiking Cycles (22:40) The "Two Times Duration Minus 1 Rule" (29:30) The Commodity Supercycle (50:50) CTAs as an Inflation Hedge (1:00:31) Commodities Congestion Trades