Matt Dines is co-founder and Chief Investment Officer of Build Asset Management, an asset management firm specializing in strategies focused on fixed income and options. He can be reached at matt@getbuilding.com
While we don’t foresee a rapid increase in yields bloodying the nose of bond markets, we acknowledge that this has happened in the past and investors should be prepared.
Modern economic growth in the U.S. is dependent on credit creation — which has perpetuated a cycle of suppressed yields and inflated asset prices. While credit creation has been accelerating away from GDP growth for the last 15 years with no signs of stopping, retirement investors are left in the intractable situation of watching the value of their savings erode. What can be done?