We have heard from some clients that they do not think bonds will be beneficial to their portfolio going forward or that they do not expect bonds to perform well in the future. Interest rates have risen, which has negatively impacted bond performance so far this year. However, the role of bonds has not changed. Bond are still there to provide protection in the event of a big equity downturn, this article mentions that “from January 1988 through November 2020, whenever monthly equity returns were down, monthly bond returns remained positive about 71% of the time.” The article also dispels a few bond myths and touches on what we can expect from bonds going forward.
https://investornews.vanguard/rising-rates-dont-negate-benefits-of-bonds/