STORY: "Bonds have many nuances to them," Conzo explained. "What should typically happen is the longer you stay in a bond, the more interest you get because your money's tied up for longer. The shorter you're in a bond, the less interest rate you should get. What we have going now is it's exact opposite. You buy a short term bond, you get a high interest rate then a longer term bond. That doesn't make sense. It's called an inverted yield curve."
But with the Federal Reserve getting closer to its first rate cuts, the inverted yield curve is "moving closer" to reversing itself.
"Right now, money markets [offer] 5% [returns]," Conzo continued. "We're very much saying, time to extend the duration, move out of money markets, daily liquidity, to things that are extending a little. Lock in that rate for longer. A very, very unique moment in time that people should take advantage of."
