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Why Bonds Could Be a Better Investment in 2023


2022 was a remarkable year for financial markets. The fact that stocks experienced a bear market wasn't all that unusual, even coming on the heels of the quick plunge just two years earlier at the beginning of the COVID-19 pandemic in February 2020. What made the year extraordinary is that the bond market performed almost as badly as stocks did.

The damage to investors in the bond market was evident across the board. Even what many saw as being safer, less volatile plays on bonds turned out to be problematic. Yet heading into 2023, many market participants are more optimistic about the prospects for bonds to recover at least some of their losses from last year.

Image source: Getty Images.

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Source Fool.com

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