Market Crash Makes Case for Multi-Asset Investing

A little volatility should not trouble a long-term investor, but investors who are diversified by asset class experienced far milder recent losses

Dan Lefkovitz 14 February, 2018 | 8:45AM

Global markets all fell on February 5 2018 stock market crash global fall bear market correction

Sometimes when markets come crashing down, there’s nowhere to hide. Consider the synchronised fall of 46 stock markets on February 5. The Morningstar Global Markets Index lost 3.6% in dollar terms that day. The US Market was down 4%. Sadly, losses have not been limited to that one day.

But stocks are not the only asset class in town. While equities have been roiled across the board, bond markets have not witnessed mass carnage, despite the proximate trigger for market turmoil – fear of rising interest rates – posing danger to fixed income. The Morningstar US Core Bond Index has lost just 0.4% so far in February while its short-term counterpart has gained 0.9%. Morningstar bond indexes focused on Japan, the Eurozone, and the UK are also in positive territory.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Dan Lefkovitz

Dan Lefkovitz  is content strategist for Morningstar’s Indexes group

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies