First Trust: Stocks and Bonds Falling Together: What Happens Next?

Today I received a chart from First Trust with very interesting information.

The chart shows all the quarters since 1976 where stocks and bonds declined together and then provides forward return data for the subsequent 6 months, 1 year, 3 years after each event.

I’ll share the chart below then point out a couple things I find noteworthy. Click on the chart to expand…

Continue reading “First Trust: Stocks and Bonds Falling Together: What Happens Next?”

Why We Own Treasuries

I started writing this note early yesterday before the wild market action prompted by heightened concerns about Russia potential invading Ukraine.

The purpose for the note was to address why we own Treasury bonds, especially considering that they are down simultaneously along with stocks for the year thus far and don’t seem to be providing any benefit.

Then stocks fell off a little cliff yesterday to lose about 2% on the day and Treasuries made around 1% thereby answering the question for me. Continue reading “Why We Own Treasuries”