Why Long Bond Exposure Is Prudent For 2025
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The article suggests that owning long bonds, such as the iShares 20+ Year Treasury Bond ETF (TLT), can provide portfolio stability amidst high U.S. market valuations and potential economic uncertainties in 2025. Lower-than-expected inflation and potential Fed rate cuts could benefit bond prices, while rising unemployment increases recession risks, making bonds a safer investment compared to stocks.
December 14, 2024 | 10:45 am
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The iShares 20+ Year Treasury Bond ETF (TLT) is highlighted as a prudent investment for 2025 due to potential Fed rate cuts and rising recession risks, which could benefit bond prices.
The article emphasizes the potential benefits of holding long bonds like TLT in 2025 due to expected economic conditions. Lower-than-expected inflation and potential Fed rate cuts could increase bond prices, while rising unemployment and recession risks make bonds a safer investment compared to stocks.
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