Stock-Bond Diversification Offers Less Protection From Market Selloffs
you are currently viewing::Stock-Bond Diversification Offers Less Protection From Market SelloffsFebruary 18, 2026--Diversification has become harder since 2020 as stocks and bonds tend to move in tandem during sharp selloffs, adding to financial stability concerns
When stocks fell, investors sought safety in bonds. Bonds rallied, cushioning losses and stabilizing portfolios. Since the start of the pandemic period-with supply shocks that fueled inflation-bonds have become less effective in cushioning volatility in stocks. Instead of offsetting equity risk, bonds are increasingly moving in tandem with stocks. This shift is particularly pronounced during sharp market selloffs, with profound implications for investors and policymakers alike. Source: visualcapitalist.com |
April 14, 2026-The global economy faces renewed tests as the war in the Middle East threatens to disrupt growth and disinflation.
After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027.