"Buy Bonds, Wear Diamonds" - Are we there yet?

Are Bonds a Buy?

This episode explores whether bonds are becoming attractive again amid sticky inflation, rising fiscal concerns, and the AI spending boom. Alan argues that bond markets are pricing in deeper risks, but the best opportunity to buy may come after a significant sell-off in US stocks.

Key topics

• Why Treasury yields have fallen despite hotter-than-expected inflation
• How public debt, fiscal deficits, and bond-market volatility may affect equities
• Why corporate bond yields could be an early warning for stocks
• How falling real yields could make gold more attractive
• Europe’s weak growth outlook and pressure on the euro
• Inflation, interest rates, and the resilient US economy
• Why Alan’s verdict on bonds is “not yet”—and what he’s watching next

Timestamps

00:00 — Are bonds a buy?
 01:56 — Falling yields despite hot inflation
 03:32 — The potential link between an equity correction and a bond-buying opportunity
 05:31 — Debt, deficits, and bond-market concerns
 06:21 — Real yields and gold
 07:39 — Europe’s growth and debt concerns
 08:59 — Inflation and the possibility of more Fed hikes
 13:31 — Why the US economy still looks resilient
 14:46 — Final verdict on bonds