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.

We can’t dispute that rising costs and inflation are at our doorstep; we could however, argue against the claim that a doomsday outcome on stocks is certain whenever interest rates rise. Let’s see what the data has to say.

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?