The stock market’s 3% drop Tuesday provides the latest proof that volatility is back. But the recent gyrations in major stock market indexes doesn’t tell the full story of what’s happening inside client portfolios.
While marquee benchmarks like the Dow Jones Industrial Average and the S&P 500 are getting all the attention, it’s the normally steady fixed-income component that is wreaking the most havoc on portfolio performance.
The S&P 500 is still up 2.8% from the start of the year, but the Bloomberg Barclays Aggregate Bond Index is down 1.3%, which will be dragging portfolios below the closely watched S&P.