FYI: U.S. stocks and bonds are both having a phenomenal year so far. The Vanguard Total Stock Market ETF (VTI) is up more than 21% while the Vanguard Total Bond Market ETF (BND) has risen by almost 6%. Developed international and emerging markets are also up big (VEA and VWO both up roughly 14%) so it’s been a great year (again, so far) for the traditional asset classes. But it may seem odd at first glance to some that stocks and bonds could both be up so much this year given many investors assume these assets are negatively correlated.
Here’s a piece I wrote for Fortune that dispels this myth and provides some context around the idea of portfolio correlations.
Regards,
Ted
https://awealthofcommonsense.com/2019/07/26793/
