Why Bonds Matter When Markets Turn Volatile
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Raymond James Senior Portfolio Manager Kim Inglis explains why bonds have historically played an important role during periods of market stress, often helping to offset equity losses and provide balance when volatility rises. She highlights how the benefits of diversification have tended to become even more pronounced during deeper stock market pullbacks.
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Kim Inglis:
Hi, I'm Kim Inglis, Senior Portfolio Manager with Raymond James. Typically when equity markets struggle, bonds tend to be a good support and historically, the larger the pullback in equity markets, the better bonds tend to perform. And so the chart that I've got here for you today shows just that so historically, when equity markets pull back ten percent or more, bond markets tend to, do two, two point one percent, which of course is a, a good buffer there, helps to, to add a little bit of support when equity markets are volatile. So while many investors view bonds as terribly boring, I would like to encourage investors instead to view them as a good friend in your portfolio.