Why bonds are crucial during turbulent market times

WHILE global markets have been on somewhat of a rollercoaster since Trump's re-election in November 2024, traders’ nerves have been particularly tested this past month.

- ROGER ESKINAZI

The CBOE Volatility Index (VIX) - one of the most widely used gauges of market turbulence - recently spiked to its highest level since the Covid-19 pandemic. This latest surge followed growing fears of a global recession, sparked by Trump’s sweeping new tariffs.

In these times of extreme market uncertainty, a balanced trading strategy is key. If you haven’t done so before, now may be a good time to consider incorporating bonds into your portfolio.

While no asset is entirely immune to volatility, bonds tend to exhibit lower correlation with high-risk assets, making them valuable during periods of market stress.