Bonds have had a nasty 2022, their lousiest year since the launch of what’s now known as the Bloomberg Aggregate bond index, almost a half century ago. Will bonds continue to stink this coming year? Probably they’ll do pretty well, which is good news for investors.
The Bloomberg index, which tracks investment-grade fixed income, is down almost 13% for the year, and at its low in October was off around 15%. The weird thing is that bonds usually don’t lose when stocks are down, which sure has been the case in 2022 with the S&P 500 sliding 20.6%. Who knows what will happen on the equity front in 2023, if indeed the long-anticipated recession finally pounces?
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