18. Understand The Yield Curve, Treasury Bonds, and Stock Market Impacts

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.

🌟 Send a question, leave a review, subscribe, follow & share!

✨⁠⁠Support the show⁠⁠💰

🔗All Market MakeHer Links: ​​⁠https://bio.site/marketmakeHER⁠ 🔗

⁠⁠Market MakeHer ⁠⁠website⁠⁠⁠⁠

⁠Subscribe to our Newsletter ⁠

Sponsorship Inquiries: ⁠jessica@marketmakeherpodcast.com⁠

Instagram⁠⁠ ⁠⁠@marketmakeherpodcast⁠⁠⁠⁠

TikTok⁠⁠ ⁠⁠@marketmakeher⁠⁠⁠⁠

Join the ⁠⁠ ⁠⁠FB Community⁠⁠⁠⁠

👀 Watch us in action on our⁠⁠ ⁠⁠YouTube Channel⁠⁠⁠⁠ 👀

✨ Follow Jess Inskip on⁠ ⁠TikTok⁠⁠ and⁠ ⁠Instagram⁠⁠ ✨

✨ Follow Jessie DeNuit on⁠ ⁠TikTok⁠⁠ and⁠ ⁠Instagram⁠⁠ ✨

**Beware of imposters! We will never message you and ask you for money directly.**

About Us 🌚🌞

Market MakeHer is an investing education podcast taught teacher-learner style by a 15-year finance expert, Jessica Inskip, to her very inquisitive beginner investor friend, Jessie DeNuit. We want to help you get better with your “finance-sis” (get it? No finance bros here). Our mission is 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. You’ll also learn about free tools and resources on our podcast and we offer a ton of free educational content on our ⁠website⁠ so you can become fin-fluent.

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.