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UNDERSTANDING AND NAVIGATING THE LONG-TERM DEBT CYCLE

5 MIN WATCH

January 18, 2024

Understanding and navigating the long-term debt cycle

Jake Miller - Cofounder, Opto Investments & Joe Lonsdale, Cofounder Palantir, Addepar, Opto; Founder 8VC
Private Assets

Key takeaways

  • When growth is the dominant factor, stocks and bonds tend to move in different directions. Today, as in the 1970s, stocks and bonds are perfectly correlated, creating a more difficult environment for investors.
  • In the current economic environment, which is dominated by inflation and Fed action, stock and bond prices may move in concert. This argues for finding and making long-term investments that are diversifying for a healthy portfolio.
  • The US has likely entered a prototypical long-term debt cycle, which could potentially last 30 to 40 years

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Important disclosures

Lonsdale Investment Management, LLC (the “Firm”) is a wholly-owned subsidiary of Opto Investments, Inc. and is an SEC-registered investment advisor. Registration with the SEC does not imply a certain level of skill or training. SEC registration does not mean the SEC has approved of the services of the investment adviser.

This website is operated and maintained by Opto Investments, Inc. Certain products described herein and institutional relationships may involve investment advisory services provided by the Firm. This website is presented for financial institutions and investment professionals only and is not intended for individual consumers or retail investors, unless specifically noted.

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