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No. of Recommendations: 1
JLC writes,

Bonds are not as "less volatile" as one thinks. Plus, you have the 30-40 year bond bull market from the high inflation of the 80s which skews the numbers. Back in '08/'09 crash, all assets (stocks/bonds/commodities) had a correlation of near 1 and EVERYTHING went down.


It depends on the maturity (i.e., duration) of the bond. I hold my "5 year's worth of living expenses" in a short-term corporate bond fund with a 2-3 year duration. That's not going to move much with a rise in interest rates. A bond with a 20 year duration would get hammered.

Fidelity has a short explanation on "duration".

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