Why are stocks and bonds both falling?

The Indicator from Planet Money

NPR

Business

4.7 • 9.2K Ratings

🗓️ 7 October 2022

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ever had a pet turtle? Try a pet bond! They're a reliable addition to your 401k that can be valuable even when stocks are down. We discuss why bonds belong in your terrarium (or retirement plan).

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Transcript

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0:00.0	NPR.
0:12.2	The US stock market is down about 20% so far this year.
0:16.9	And what makes this a particularly bad year for investors isn't just stocks.
0:23.1	Bonds are falling in value too at the same time.
0:26.9	This almost never happens.
0:28.9	Bonds are basically loans when you yourself loan some money to a big company or a city
0:34.3	or the US treasury.
0:35.8	You buy their bonds and in return you get paid your money back with interest.
0:41.3	So a lot of people are wondering why are both stocks and bonds getting clubbed all at once.
0:48.7	This is the indicator from Planet Money.
0:50.3	I'm Darren Woods.
0:51.3	And today we've got NPR's, Chris Arnold.
0:53.9	He covers personal finance.
0:55.4	Welcome back to the show Chris.
0:56.9	Hey Darren, today on the show why are stocks and bonds both falling at once?
1:01.6	If you have a retirement account you're going to want to hear this one.
1:04.1	Yeah, or a 529 plan for your kids college.
1:07.1	Those have bonds that have been getting hammered too.
1:09.3	And we promise though there will be some good news.
1:12.7	I could do with some good economic news right now.
1:18.1	This message comes from our sponsor Lincoln Financial.
1:21.2	How much money will you need to not worry about money?
	...

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