Bonds could outperform stocks as rates rise and Fed fights inflation.

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Bonds could outperform stocks as rates rise and Fed fights inflation.

  • After logging one of the worst performances in history, bonds are making a comeback, analysts say.
  • Rising yields and stabilizing inflation are positives for bonds, they say.
  • In contrast, higher rates and possible recession will hurt corporate earnings and stocks.

While many wonder whether the stock market has seen its lows this year, there’s a rebound happening in the bond market that people might be missing, analysts say. 

Bonds usually rise when stocks fall, which is why they’re often used as a counterbalance to stocks in a portfolio. That didn’t happen this year amid soaring inflation and uncertainty over interest rates and the economy.

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