2016 began with a bang (in a bad way) — with the stock market falling in a hurry. In fact, it was the worst 10 day start to a calendar year in history. From the beginning of the year to January 15th, the U.S. stock market (as measured by the S&P 500 Index) had dropped over 8%. The S&P 500 hit its low for 2016 on February 11th, 6 closing at 1829.08, a decline in excess of 10.5% for the year.
If you’ve owned any stock funds during the past few years, the chart below should make you happy.
If you are like the typical investor in recent years, you have been very happy with your bond portfolio.
The chart below from Charles Schwab dramatically illustrates how widely the love affair with bonds has spread. You are looking at the net inflow of cash into domestic stock mutual funds versus total bond mutual funds from 2008 through most of 2012.