Understand The Yield Curve, Treasury Bonds, and Stock Market Impacts
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Today we're talking bonds, Treasury Bonds, that is. 🍸 Along with yields, impacts on the market, and how the US always pays its debts 🦁😏 🤨 What exactly is the yield curve and what does an inverted yield curve mean? We're going to learn how to use this as a scrying tool to predict the future in terms of interest rate changes and economic activity. Let's demystify the fixed-income security market (did you know there is not just a stock market, but also a bond market?) and learn about the US department of the treasury and how they issue debt. 🔮Yield Curve Crystal Ball 🔮 Normal Yield Curve = great, economy expected to grow over time Steepening Yield Curve = might mean inflation is high, short-run good for stocks, but see what the Fed does Inverted Yield Curve = Not always, but can indicate a recession *See GDP and Economic Data for the scrying results* 💰 Should We Buy US Treasury Bonds, Notes or Bills Now? FYI: Bonds = Long-term; Notes = Medium amount of time; Bills = Short-term Having a portion of your portfolio that is risk-free (i.e. bonds) helps to have you a more diversified portfolio. As of Nov. 9, 2023: 2-Yr T-Note Yield: 5.037% (this is prettttty good for a short-term if you wanted to look into these - not advice, we are not financial advisors as a disclaimer) 5-Yr T-Note Yield: 4.654% 10-Yr T-Note Yield: 4.640% 30-Yr T-Bond Yield: 4.782% 💸 How do you buy US Treasurys? Go to your screener tool (we taught you about screeners in Ep. 08) and select "category: fixed income or treasurys" and you buy them in an ETF. 🧠 FYI, treasurys is the plural when we're talking about US treasury securities to differentiate from "treasuries" as in an institution like the Treasury Department 🧠 🧐 Who is "The Treasury" and What Do They Do? They are the finance department of the US government. They issue the debt.   ⚡️ What does this have to do with the stock market rally?  The treasury announced the issuance of debt funding, and it was a slower pace of supply than the last quarter. And in the last quarter it was a ridiculous amount. This gave clarity to the bond market. Listen to the full episode to learn allll about it! 🙋🏽‍♀️🙋🏻‍♀️🙋Still Confused? Have More Questions or a Comment?🙋🏾‍♀️🙋🏼‍♀️🙋🏾 Holla @ us on: Market MakeHer website Instagram @marketmakeherpodcast TikTok @marketmakeher X/Twitter @MarketMakeHer Join the Money Coven FB Community 👀Watch us in action on our YouTube Channel 👀 ✨About Us 🌞🌚 Market MakeHer is an investing education podcast and LLC with a mission to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content on our ⁠website⁠! Important Disclosures: Market MakeHer podcast is unsponsored at the time of recording. Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities. Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.
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