Do You Still Think Bonds Are a Flight to Safety?
For years, we've all been taught that bonds are the "safety" valve to the otherwise stock-heavy allocation of our retirement/investment portfolios. And for years, we've argued that this was largely unproven as all of us have been living through extraordinary times where bond ETFs and mutual funds haven't faced the pressure of rising interest rates.
But the tables have turned over the last year to 18 months. Interest rate policy has shifted, and bond funds (ETFs and mutual funds) are reaping the sour harvest. The notions about bonds being more stable and safe are not holding.
In this episode, we look at specific data that may surprise you. Did you ever think you'd live through a time when the value of an investment-grade bond-focused ETF would experience a 17% loss in a calendar year? 2022 was one of those years.
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