Curt Lyman appeared on the podcast “Money and Politics in Delaware” on August 25, 2018. The topics ranged from ETFs and bitcoin on the equities side of the market, to how rising interest rates might be poised to affect the fixed income bond side of things.
Curt’s common sense approach is backed by 40 years of experience in investment management, and he’s seen two unexpectedly harsh bear markets in his career. His opinions are well-informed in terms of history. Curt feels the real issue which may be facing us now is liquidity, as there will be no buyers of bonds on the other side of trades as interest rates continue to rise. He feels this is exacerbated by the central banks, which have basically been printing money since 2008—money which is no longer tethered to a standard like gold—a large percentage of which has flowed into bonds issued since the 2008 recession. Curt warns that as interest rates rise, there may be sellers all rushing to the exit with no buyers, and that the drop in bond values will spill over into capital markets.
Listen to the whole 10-minute segment here: