At the beginning of the year, many advocated for the holding of bonds over equities due to interest rate predictions. During this short period, stocks have opened up a +10% gap from bonds.

When the US Federal Reserve committed to raise interest rates in the face of rising inflation, investors and financial media like Bloomberg, Morningstar, and Yahoo Finance were quick to predict that bonds will underperform cash. Looking at over 30 years of International Government Bond data, we examine the validity of these forecasts.