As rates rise, the antidote to volatile stocks could now be bonds. Here’s why.

Posted on September 22, 2022Comments Off on As rates rise, the antidote to volatile stocks could now be bonds. Here’s why.
  • After logging one of the worst performances in history, bonds are making a comeback, analysts say.
  • Rising yields and stabilizing inflation are positives for bonds, they say.
  • In contrast, higher rates and possible recession will hurt corporate earnings and stocks.

While many wonder whether the stock market has seen its lows this year, there’s a rebound happening in the bond market that people might be missing, analysts say. 

Bonds usually rise when stocks fall, which is why they’re often used as a counterbalance to stocks in a portfolio. That didn’t happen this year amid soaring inflation and uncertainty over interest rates and the economy.

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Comments Off on As rates rise, the antidote to volatile stocks could now be bonds. Here’s why.