Bad times for bonds lately, for sure. The extent (-12.3% for BND since November) is certainly not nothing, but has produced howls and hyperbole far outstripping what would accompany a similar loss for equities. Why do bond losses produce such outsized panic?
I'm a big Paul Merriman fan, but noticed something on one of his recent podcasts that points to why Risk Parity may lead to better outcomes than traditional portfolio approaches. Basically, it's not just total risk that investors should focus on.