May 2022 / VIDEO
What a Rough Quarter for Bonds Means for Asset Allocators
The bond market had a rough start to 2022, but Treasuries could be defensive in a large sell-off and may benefit from rate hikes.
- In the first quarter of 2022, the bond market had its worst three-month performance in more than 30 years.
- Although bonds usually have an inverse relationship to stocks, rising interest rates and inflation shocks are typically headwinds for both asset classes.
- Our Asset Allocation Committee is slightly overweight to bonds, favoring higher-yielding sectors including bank loans, high yield bonds, and short-term TIPS.
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