Market history · Portfolios ·
2022: when stocks and bonds fell together
In 2022 the S&P 500 fell about 18% on a total-return basis, and government bonds fell too, as rising inflation and interest rates hit both. Bonds and equities normally offset each other, but in a year when inflation was the main driver, they moved in the same direction.
It was a reminder that the relationship between asset classes is not fixed and depends on what is driving markets.
The takeaway
Diversification across drivers (inflation, growth, rates), not just across labels, is what protects a portfolio.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.