MAPS Portfolios Stocks and bonds are falling simultaneously. | FSMOne SG - Research Highlights

MAPS Portfolios

Stocks and bonds are falling simultaneously. Should you be concerned?

——————————————————

• Equities and bonds have become more correlated as inflation expectations become unanchored. This can be challenging for investor’s portfolio in a market downtrend.

• We are not overly concerned as we see a lower likelihood of a further simultaneous decline, as both equities and bonds typically rebound quickly.

• Staying active is vital to defend the portfolio’s return during market turmoil. For our MAPS portfolios, we have actively maintained our diversification choices, rebalanced periodically, all while remaining focused on the longer-term horizon and the right asset classes during this period of market volatility.

• Despite the positive equity-bonds correlation, we see the merits in bonds as they enhance our portfolio diversification and dampen equity market drawdowns.

: Read the full article here
: FSM MAPS Portfolios