What If Stocks and Bonds Move Down at the Same Time?

What If Stocks and Bonds Move Down at the Same Time?
A decoration hangs on a Christmas tree outside the New York Stock Exchange (NYSE) on the last day of trading before Christmas in Manhattan, New York City, on Dec. 23, 2021. Andrew Kelly/Reuters
Noel Smith
Updated:
Commentary
What do your stocks, house, car, lawnmower, and expensive jewelry all have in common? If things get financially desperate enough, you’ll sell them all. At first thought, one might assume that there is no real correlation between a lawnmower and a car, but in times of serious stress, they all have to go—at the same time! If you think your real estate is worth $500,000, maybe you’ll take $495,000, but what if you have to sell it in a month no matter what? How about a week? How about a day?
Noel Smith
Noel Smith
Author
Noel Smith is a Managing Partner and the Chief Investment Officer of Convex Asset Management. As a member of the CME, CBOT and CBOE Noel has over 25 years of experience trading volatility, market making, and managing risk.
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