11 February 2016
It's been a tough several months for investment returns. Since June of last year, the S&P 500 index is down 12.24%, and bonds, as measured by the iShares Core U.S. Aggregate Bond ETF (AGG), are down .44%.
Investors are concerned about rising interest rates slowing the economy. They're worried about whether the plunge in oil prices will ultimately lead to bankruptcies in the industry, and hurt banks that have made loans to endangered companies. And they fear that the slowdown in China's economic growth will continue to hurt commodity producers.
In short, we are in the midst of a difficult and uncertain market. Right now, it's tough to find winners either in stocks or bonds. But as grim as things are in this moment, making investment decisions based on the situation right now would likely be a major mistake.