Are you going to get protection from bonds during a down market? The answer is yes, but not to the degree that you may hope. Mainly, there will be positive gains in bonds during down equity years, but there is no guarantee. The most recent year equities were down was 2022, and bonds were also down. During the stagflation years of the early 1970s, there were no gains to be made from holding bonds. When equity downturns are coupled with inflation, bonds will not likely provide a positive cushion.
No comments:
Post a Comment