Burgundy Asset Management: Correlation Breakdown
2022 has been an atrocious year for bondholders. Often labeled as the ballast of a balanced investment portfolio, bonds have, in many cases, shed over 10% of their value since January. 2022 has been a bad year for asset classes with greater volatility and a truly horrendous period for bondholders. Investors experiencing pain right now want to know why bonds and equities have performed so poorly over the last several months and what the future holds. To understand why bonds have performed so poorly in 2022, we need to look at the broader economy, and to understand the relationship between...