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Module 2 · Return engines · Lesson 2 of 5 · 4:38
Interest rates, the gravity of markets
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About the full course
Why higher rates lower every price, what duration means for your bonds, and why the "safe" asset fell almost 48% after 2020.
In this lesson
- Short-term vs long-term rates, and who sets them
- Duration: how much a bond fund loses when rates rise
- 2022: stocks −18%, long-term Treasuries −31%
Apply it
Look up the duration of every bond fund you own. Duration ≈ % loss if rates rise by 1 point.