Lesson 7: When Bonds Hedge Stocks — and the 2022 Exception. The bond sleeve is the textbook crash cushion. In 2022 it stopped working — for one specific reason.
Stocks are crashing — what do safe bonds usually do?
Answer on instinct before we cover the exception.
Assessment
In a typical recession, when stocks fall hard, what do safe government bonds usually do?
Stocks are falling ☕ What are your bonds doing?