Bonds are becoming a major disappointment for investors

Frankfurt Recession, war, inflation, interest rate hikes – it’s no wonder that the major stock markets have lost around 15 percent this year. But similar slumps, sometimes even more drastic, have happened before.

More alarming are the slumps in the bond markets. Since January, US government bonds have lost an average of almost ten percent and German Bunds around nine percent in value. Such a clear sell-off is historically unique.

Bonds are actually considered a stabilizer for the portfolio and a counterweight to shares: When the markets are in a sell-off mood and investors shy away from risk, they always park their money in solid bonds, where the repayment of the capital is considered secure.