So far in 2022, both the stock and bond markets have posted serious losses. To find another market that looks like this one, you’d have to go all the way back to 1969, according to data from BlackRock.
The S&P 500 is down nearly 24% year-to-date, and the Bloomberg Barclays U.S. Aggregate Bond index has surrendered about 16%. Should both indexes finish the year in the red, it would be the first time that has happened in decades.
And for investors who hold both stocks and bonds, that’s not how a mixed portfolio is supposed to work.
“Normally, stocks and bonds have an inverse relationship,” says Kevin Brady, a certified financial planner and vice president at Wealthspire Advisors in New York City. “Historically, bonds have had a ballast effect when stocks go down. That’s not happening this year.”
With losses piling up in the two most common asset classes for retail investors, “there haven’t been many places to hide,” Brady says.