How Asset Classes Perform At The Start Of A Recession

The best time to prepare for a recession is before it begins. Looking at the early recession phase over the past 50 years provides valuable insight into how different asset classes have historically performed. U.S. Treasuries have delivered the strongest average returns at approximately 14%, followed by corporate bonds at around 4%. Equities, on the other hand, have generally posted negative returns, with small-cap stocks experiencing the steepest declines as investors shift away from riskier assets and seek the safety of fixed income. 

Source: Factset

Early recession – start of a recessionary period until 3 months before it ends. 

Past performance is not indicative of future results.

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.