Jim Bianco, President and Macro Strategist at Bianco Research, sits down with Wilf for an in-depth look at global bond markets, central bank policy, and what it means for equities and your portfolio construction. 

After maintaining a bearish stance on bonds since 2020, Bianco reveals why he has finally stepped back from that call and now sees value in the bond market. With US yields crossing 5% and global rates surging, Bianco explains why bonds are offering fair value for the first time in years, and why strong nominal GDP growth justifies higher rates as opposed to sending warning signs. 

Despite that major pivot, Jim explains why he prefers long-term TIPS over nominal Treasuries to hedge ongoing inflation risks, and explores the risks to his call that come from surging bond yields in Europe and Japan, which could mean there is more downside to come.

Wilf and Jim discuss the evolving nature of the Federal Reserve under Kevin Warsh including why the unanimous 12–0 September vote to hike rates makes it HARDER for the Fed to re-establish their credibility in the short term, with risks of higher yields as a result through the rest of 2026, and enormous competing pressures on the Fed around their next two meetings, which sit either side of the mid-term elections.

They also discuss why rising yields haven’t derailed stocks more; why he thinks Scott Bessent has been forced to make outlandish claims like “I am the house”; why the scale of the US debt problem is overstated; why he is constructive gold, but disappointed by its recent performance; why he loves crypto long term and thinks the failure of the Clarity Act is in fact a good thing.

Finally Jim outlines why a 60/40 portfolio is still sensible long term, but not for the reasons you might think, and why the key question for the next stock market crash is not the level prices fall to, but the time they remain there – “a bear market is time, not price.”

Follow Wilfred Frost on X: @WilfredFrost

Follow Jim Bianco on X: @biancoresearch

0:00 Intro

2:45 Bonds fair value
5:01 Why rates have surged
8:50 Fed still not credible
15:48 Warsh Fed unpacked
23:00 Bessent’s interventions 
27:27 Risk of higher yields
29:40 Risk from foreign yields
32:24 High rates for stocks 
36:37 Rise of retail traders
40:45 Debt problem overstated 
44:40 Gold – constructive but disappointed
45:44 Bull on crypto
50:33 60/40 – still works but for new reasons
53:01 Start to BUY bonds
54:51 Bear Mkt is Time Not Price

Recorded 1st October 2026

Watch the full episode on The Master Investor Podcast YouTube channel

And follow @WilfredFrost on X and Linked In

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