Do any advisors in the financial planning community even conceptually understand what a long - term
bond bear market looks like these days?
-LSB-...] What does
a bond bear market look like?
Not exact matches
Now
look at the right side of the table to see how
bonds performed in the 30 year
bear market.
We can, however,
look back at the performance of various treasury
bonds to see how they performed in the last real
bond bear market.
The returns on
bonds only
look good with the benefit of hindsight and this will be true again the next time we get a stock
market crash or prolonged
bear market.
The results were published in Rate - Driven
Bond Bear Markets (2013) and they
look like this:
Second, a
bear market in
bonds doesn't
look like a
bear market in stocks.
Given recent price and economic momentum, we are reasonably confident the
bear market in EM assets — five years long for EM equities and currencies, and three years long for EM local currency
bonds — came to an end in January 2016, and the early stages of a bull
market look to be well underway.
Painful memories of the
bear market and continued frustration over low interest rates have a lot of investors
looking beyond stocks,
bonds and mutual funds for their retirement savings.
When
looking at the above chart, it's clear that investors that held
bonds through the last two equity
bear markets were especially fortunate.