Insight - Pick a lane? Down years rare for both stocks and bonds

“We view it as more likely that bonds are down but stocks are positive for the full year,” says Keith Lerner, co-chief investment officer at Truist IAG.

THE prospect of rapid United States monetary re-tightening to cool the hottest inflation in 40 years has unnerved both equities and bonds so far this year – but history suggests it’s unlikely that both end 2022 in the red.

Research going back to 1926 shows that, depending on what bond data you use, the S&P 500 and Treasuries have posted negative annual returns only a handful of times, even though both have often declined in tandem in the month of January.