logo
episode-header-image
Oct 2023
42m 15s

Are Government Bonds Really Risk-Free?

PENSIONCRAFT
About this episode

Government bonds are considered the world's safest asset, setting the "risk-free rate" against which all other investments are judged. But with rising national debts and dwindling credit ratings, are they really above question?

We discuss the implications for investors if government bonds are actually at risk of default.

And in today’s Dumb Question of the Week: Why choose bonds over simply holding cash?

Selected links


---

Get in touch

📧 mhr@pensioncraft.com

🎧 many-happy-returns.captivate.fm

---


Join PensionCraft

🌐 Become a member at pensioncraft.com

▶️ Subscribe on YouTube

---


Disclaimer

This podcast is for informational and entertainment purposes and is not financial advice. We do not provide recommendations or endorse any decision to buy, sell or hold any security. We cannot be held responsible for any actions listeners may take and investors are encouraged to seek independent financial advice.


Copyright 2023 Many Happy Returns

Up next
Yesterday
Is the UK Stock Market Dying?
The UK stock market is shrinking. Since 2007, the number of listed companies has fallen by 45%, and those that remain trade at stubbornly low valuations compared to global peers. What’s driving the decline? And can it be stopped? And in today’s Dumb Question of the Week: What is ... Show More
40m 57s
Jul 2
Neural Net Worth: What If AI Isn’t a Bubble?
AI stocks are soaring. Valuations are stretched and capital spending is off the charts. To many, it smells like a bubble. But what if it’s not? What happens to markets if AI actually lives up to the hype? How could it reshape business models, transform economic growth, and change ... Show More
57m 29s
Jun 25
Fragile Ceasefire: Are Markets Complacent?
President Trump announced a ceasefire in the war between Israel and Iran. Markets reacted swiftly: stocks rallied, oil plunged, the dollar and gold slipped. But as investors shrug off geopolitical tensions, are they underestimating the risks? And in today’s Dumb Question of the W ... Show More
25m 29s
Recommended Episodes
Feb 2024
Considering Bonds? What to Know Before You Buy
Bonds can be intimidating. While many investors regard them as a necessary component of a balanced portfolio, that doesn't mean they have a good understanding of how they work. When U.S. bonds struggled to their worst performance ever in 2022, investors naturally were spooked. Bu ... Show More
41m 4s
Mar 2021
Why in the World Do You Own Bonds?
With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.Topics covered include:David's business and investment philosophyHow bond funds ... Show More
23m 58s
Aug 2023
Investment masterclass: Are bonds back?
Last year was one of the worst ever for the bond market. Fast forward to today and many people in finance say that despite the volatility, it is time for investors to get reacquainted with bonds. But what exactly are bonds, how do you go about investing in them and what are the r ... Show More
24m 43s
May 2021
Gambling vs investing
Most people think of investing as any situation where you put down money with the expectation of getting a return on your money. Unfortunately, what many people think of as investing is actually gambling. For years, most people invested in traditional stocks and bonds. Stocks and ... Show More
39m 51s
Sep 2023
Central banks made bonds sell off
This week, one central bank after another made it clear that interest rates need to stay higher for longer. As a result, government bond yields rose sharply, the US dollar strengthened and equities sold off. Only the Bank of Japan remains on a different wavelength, keeping its mo ... Show More
17m 11s
Jun 2022
Bonds 101: how to invest in bonds & what to look out for
Have you ever wondered what an investment bond is? To put it simply, bonds are effectively an IOU between a borrower (the issuer of the bond) and a lender (the investor who purchases the bond).Although they’re less discussed in the retail investment space, the bond market in Aust ... Show More
48m 13s
Sep 2023
Americans Love Borrowing Money (EP.326)
On episode 326 of Animal Spirits, Michael Batnick and Ben Carlson discuss: Future Proof, how markets have changed over the past 70 years, why allocations to stocks are higher than they were in the past, small caps vs. large caps, trading options vs. gambling on sports, why people ... Show More
1h 10m
Mar 2024
WTF are bonds? How and when to use them
Do you invest in bonds? You might not realise it but you probably do. If you have a workplace pension the default is to invest you in both stocks and bonds. But is this actually the right way to build long-term wealth? Ramin Nakisa from the PensionCraft YouTube channel, and frien ... Show More
1h 9m
Apr 2024
Are Emerging Markets Bonds a Once in a Generation Opportunity?
Some analysts suggest that now is an incredibly attractive entry point to invest in emerging market bonds. We look at how to do this and whether you should.Topics covered include:How emerging markets bonds have performed relative to U.S. bondsHow frequently have emerging markets ... Show More
24m 18s