In this episode of the Odd Lots podcast, the hosts delve into the bond market following the recent election, highlighting a notable contrast: while stock market volatility remains low, bond market volatility is on the rise. Guest Harley Bassman sheds light on this discrepancy, pointing to the uncertainty surrounding the Federal Reserve's future interest rate decisions and the unpredictable economic effects of the new administration's policies, especially in areas like immigration and tariffs. Bassman believes the market is currently fairly valued, but warns that ongoing uncertainty about these policies and the potential for inflation to return will keep volatility high. The conversation also explores the political ramifications of increasing interest rates, particularly their effects on the national deficit and mortgage rates.
