It was the worst three month stretch for bonds since 1980. The Bloomberg Barclays Aggregate bond index fell 6%. The index yields about 2.5%, meaning it lost over two years of expected income in a quarter. Add in high inflation, and bonds had a dismal start to the year.

March 2020 offers an excellent case study for how BEW rebalances client portfolios. Studies demonstrate that rebalancing systems drive significant long-term value. March 2020 was a strong validation of concept.

Second, 2020 should humble investors from drawing direct lines from the news or their lives to stock markets. Most expect the market narrative to match their worldview. Often, this approach allows fear to drive action. There are too many variables with too much unpredictability, uncertainty, and potential bias for anyone to reliably draw these lines.