• Skip to primary navigation
  • Skip to content
  • Skip to footer

Financial Woman

Empowering Women By Helping Them Learn To Invest

  • Home
  • Programs
  • Free Tools
  • Praise
  • About

Do Stocks and Bonds Truly Move in Opposite Directions?

By Camille Gaines

Email, RSS Follow
Pin It

“I recently wrote about how asset allocation can reduce risk. Many financial advisors recommend an asset allocation between stocks and bonds to reduce risk, often stating that they move in opposite directions. It is important to remember that many asset classes, especially stocks and bonds, frequently move simultaneously. This means that if stocks as an asset class go down, bonds will also go down. Historically, there have been time periods where this has not been true, but in recent years it has been true. This is especially true for corporate bonds and long term bonds.

Search

  • Privacy Policy
  • Terms of Use
  • Privacy Policy
  • Terms of Use

Copyright © 2007-2022 Financial Woman™