From The Motley Fool · Ben Gran · · 50s
Bond Sell-Off Recession Risk
Historical data shows investors should stay invested during bond market sell-offs.
In brief
Historical data shows investors should stay invested during bond market sell-offs. Investors should maintain stock holdings during bond market sell-offs to weather potential recessions. Originally reported by The Motley Fool.
Bond market sell-off
Global bond yields surged from 4.03% to 5.24% in the past year.
Bond market sell-off impact
Higher bond yields increase borrowing costs for consumers and businesses.
Recession risk
Rising bond yields can trigger recessions by making debt more expensive.
Historical stock performance
S&P 500 has recovered from every recession and market crash since 1928.
Vanguard S&P 500 ETF
VOO delivered 13.75% annual returns with negative 18.15% total return in 2022.
Investor strategy
Long-term investors should stay invested through recessions and market volatility.
Historical trend
S&P 500 has delivered 9.98% average annual returns over 98 years since 1928.
The short version
Investors should maintain stock holdings during bond market sell-offs to weather potential recessions.
