Jeff explains that bonds appear to be back to playing their traditional role as diversifiers against stock downturns. But a look back in history reveals that inflation may be key to how well this relationship holds up in the future.
The first 3 months of 2019 have been busy for bonds. Global interest rates have declined significantly, the Federal Reserve has implied that it will halt short-term rate hikes and the yield curve inverted. Overall, there are growing fears that the global economy is slowing down.
These market movements highlight a critical theme for investors