Broker Check

Bonds in the Red, Stocks Treading Lightly in Recent Years

October 26, 2023

In the past three years, conservative investors faced unexpected challenges as traditional safe havens exhibited surprising volatility. Contrary to their historical stability, bonds experienced a downturn, turning negative over this period.

Simultaneously, the stock market displayed only marginal gains, leaving conservative portfolios with less-than-ideal returns. This shift in the financial landscape, as depicted in the accompanying chart showcasing the performance of long, intermediate, and short bonds relative to the S&P 500, underscores the evolving risk dynamics. Navigating this landscape requires a reassessment of traditional risk perceptions, as bonds and stocks present nuanced challenges that demand a more comprehensive understanding of market dynamics.