Investment experts tell us that when the stock market is down, bond mutual funds go up. Generally.
Some bond funds were down in 2008, during the worst stock market crash since the Great Depression. Though most were up for the year. During past stock market crashes and also in general corrections and bear markets we could always be assured that the money we had invested in bond funds would lower our total loss.
For example, during the bear market of 2000-2003, the stock market had a drawdown of 44% but if you were 50% in total Bond and 50% total Stocks your drawdown was only 11.57%. Because a total Bond Market Fund went up 42.96% from January 1st 2000 and December 31st 2003, a terrible period for the stock market, you actually came out ahead in a 50-50 stock bond portfolio during the terrible stock bear market from 2000-2003.
Looks like bond funds won't save us during the upcoming stock market crash. Agree?
Submitted November 22, 2018 at 04:29AM by KillingTime56 https://ift.tt/2QYdziB
