The stock market is a tried and tested way to build wealth at the tradeoff of volatility and risk. There are multiple ways to manage both but with SVB’s collapse serving as a cautionary tale, we believe in employing evidence-based protocols.

2022 was one of the worst years for bond returns. Conservative investors with larger bond allocations in their portfolio would have suffered large paper losses in the face of the fastest interest rate hiking cycle in history. But these losses could mean additional future returns.

Strategies which reach for yield often lead to heightened volatility and magnified losses during times of market stress, and if emotions get the better of them, investors will inadvertently sell the assets at the worst possible time.

Much to the surprise of investors, the stock market posted good returns for 2020 despite the overhang of COVID-19. Most investors know what happens to their bond investments when interest rates change, but how effect does it have on our investments?