I want you to look at my chart above, Bonds vs. Stocks. What I’ve done for you is offer a look at the Fourth Quarter of last year. Of note, the Fed was coming off a series of rate increases and had begun lowering rates in August. Additionally, the Republicans lost the House to Democrats in November. Talk about uncertainty in the markets.
The black bars show how bonds rallied. The blue bars show how stocks cratered.
This micro example shows you the power of counterbalancing. You have seen time after time at this website how I want you to focus on your risk first and foremost. And this is one more example of that.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- Memorial Day Remembrance - May 25, 2020
- Words of Wisdom from Matunuck Oyster Bar’s Perry Raso - May 22, 2020
- Drumline Battle | Army vs Air Force - May 22, 2020
- “The Losses are Taking a Toll on Their Health” - May 21, 2020
- Robo-Advisors: When You Have a Lot More to Lose than Money - May 20, 2020