stock trading FAQ's

Do Bonds Go Up When the Market Crashes?

Generally, but not all the time. The bonds that do best in a market crash are government bonds such as U.S. Treasuries; riskier bonds like junk bonds and high-yield credit do not fare as well. U.S. Treasuries benefit from the “flight to quality” phenomenon that is apparent during a market crash, as investors flock to the relative safety of investments that are perceived to be safer. Bonds also outperform stocks in an equity bear market as central banks tend to lower interest rates to stimulate the economy.

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