Podcast- Are Bonds “Back”? A fixed income deep dive with Jim Jackson, Co-CIO at Victory Capital

Podcast

Jan 18, 2024

Interest rates have reached levels not seen since in well over a decade. How should investors navigate this new world of higher rates? Are they here to stay? To help unpack what this seismic shift means we sat down with Jim Jackson. Jim is currently the co-chief investment officer and senior portfolio manager of Victory Income Investors, which was formerly known as USAA Investments . We had Jim on because he is among the most qualified people in the world to discuss this with. We were able to get his thoughts on so many important conversations we are having with clients. Before entering the investment business, Jim served in the United States Marine Corps. He holds a degree in economics from the United States Naval Academy, an MBA from the University of Michigan, and is also a CFA® charter holder.

In this conversation Jim and first I discuss his career path and how he was the first person in his family to attend college. He tells the story of how his interest in a career in finance started on an aircraft carrier, and the role curiosity and luck have played along the way. He also gives advice to those seeking to make a change in their career that aligns with their personal interests.

While we do go “into the weeds” of fixed income investing at times, this conversation is not just for people interested in the complexities of bond math or monetary policy. First, Jim explains what “fixed income” actually means and the role it should play in your portfolio. From there we take a broad historical view of interest rates and discuss how the last 40 years of declining interest rates have influenced people’s decision-making, and how the magnitude of the Federal Reserve’s interest rate hikes caught people off guard. We also discuss the current narratives playing out in markets today and look ahead to potential risks and opportunities.

Admittedly this is a longer episode, but there was so much I wanted to ask him. We hit on everything from the difference between a bond and a stock, to the risks of holding too much cash in a portfolio today. We also discuss how to think about growing concerns over US Government debt levels, why negative news can make it hard to stay focused on the long-term, and the one question anyone with a portfolio should be asking themselves today.

Jim also shares his team’s investment philosophy and explains why they spend very little time trying to make predictions about the economy or the direction of interest rates. Instead, their focus is on continual improvement of their process and focusing only on the things they can control. Interestingly this even extends to how Jim spends his personal time, where he avoids watching financial news on television all together. Our entire team learned a lot from this conversation, and I think you will too. It was an honor to have Jim as a guest. Thanks again to him for sitting down with us, and we hope you enjoy this episode.

None of the information contained in the Podcasts constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You understand that Alliance and its contributors are not advising, and will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information contained in the Podcasts may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

These podcasts (the “Podcasts”) are created and authored by Alliance Wealth Advisors, LLC (“Alliance”) and are published and provided for informational and entertainment purposes only. The information in the Podcasts constitutes the opinions of Alliance and its contributors.  

From time to time, Alliance and its contributors may hold positions or other interests in securities mentioned in the Podcasts and may trade for their own account(s) based on the information presented. They may also take positions inconsistent with the views expressed in its messages in the Service. 

Alliance is an SEC registered investment advisor and it is important to remember that investments in securities involve risk, including the potential loss of principal invested.  Past performance is no guarantee of future results and diversification does not guarantee a profit or protect against loss in a declining financial market.

The guest on this episode was not a client at the time of this interview and did not receive any compensation. For more information, please visit alliancewealthadvisors.com/legal-disclosures

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