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"Bonds just had on of the worst drawdown of the century: is it time to buy? In my opinion it can be a good idea to start to build a small position there, mainly on investment grade bonds."
Could you elaborate your thinking on this a little more? If the market + Fed are thinking several interest rate hikes throughout this year are likely then wouldn't that just depress bond prices even further? Why not just wait out until the rate hikes for this year have been carried out to buy bonds?
Also when you said "Equities remains my favorite asset class right now: despite the risk of recession and stagflation I still don’t see signs of a lasting bear market coming soon." I was wondering if you've considered using an options writing strategy to hedge against this. I wrote this article on using it on leveraged ETFs.
But even if you didn't use leveraged funds according to this paper it appears that options writing strategies outperform in both flat and bear markets.
In this letter you said:
"Bonds just had on of the worst drawdown of the century: is it time to buy? In my opinion it can be a good idea to start to build a small position there, mainly on investment grade bonds."
Could you elaborate your thinking on this a little more? If the market + Fed are thinking several interest rate hikes throughout this year are likely then wouldn't that just depress bond prices even further? Why not just wait out until the rate hikes for this year have been carried out to buy bonds?
Also when you said "Equities remains my favorite asset class right now: despite the risk of recession and stagflation I still don’t see signs of a lasting bear market coming soon." I was wondering if you've considered using an options writing strategy to hedge against this. I wrote this article on using it on leveraged ETFs.
https://premiumincomeinvestments.substack.com/p/leveraged-income-generation?s=w
But even if you didn't use leveraged funds according to this paper it appears that options writing strategies outperform in both flat and bear markets.
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.458.4882&rep=rep1&type=pdf
Curious on your thoughts.