In the recent equity drawdown, bonds quietly stole the spotlight, reminding investors of the usefulness of bond exposure in a multi-asset portfolio. The chart below looks back nearly 50 years, showing the performance of bonds during equity market downturns.
Since 1976, when stocks faltered, bonds provided stability and capital preservation. Bonds acted as a counterweight to equity risk, proving to be especially effective amid market volatility and a flight to quality. Amid ongoing economic uncertainty, we believe bonds offer diversification, defense against equity risk as well as total return potential.
Related Insights
-
Weekly View from the DeskPGIM Fixed Income shares their weekly views and outlook for fixed income markets.
Read More
-
The Bull Market Climbs a Wall of Worrying HeadlinesIn its 3Q 2025 outlook, PGIM Fixed Income shares their views on the current economic environment and outlook for fixed income markets.
Read More
-
Gatekeeper Pulse® - Risk Readiness at the ForeUncertainty fosters demand for risk-minded managers and volatility-dampening strategies.
Read More
%20(1):560by316?wid=360&hei=200&qlt=90&bfc=on&ts=1753720344605)
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.
The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.
Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
4565443
