There Was Nowhere for Investors to Hide in February's Market Reversal
- The best one could get was a 1.4% slide in high-yield bonds
- Least-bad asset has been worse only one other time in decades
This article is for subscribers only.
Bets on cooling inflation and lower rates proved misplaced in February and investors hit the sell button across assets.
From stocks to fixed income and commodities, just about everything fell in a reversal of January’s spirited rally. Shelter was hard to come by: the least-bad return among major US assets was a decline of 1.4% through Monday from high-yield bonds. That was followed by a drop of roughly 2.5% each in Treasuries and the S&P 500 Index, a 3.2% slide in investment grade and a 5% slump in commodities.