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.
Click to Talk with an Advisor
