During 2008 financial crisis, the stock market went down and the interest rates were cut by Federal Reserve Bank since it needs to save the US and our financial system.
Today, the stock market volatility is related to Federal Reserve Bank raising interest rates. If you look at bond funds for the past 1.5 years, you will find the total returns on most bond funds are negative because most bond funds have longer duration of 2 years. If a given bond fund has a 3% yield and 6 year duration, the total return of this bond fund will be -3% for every 1% of interest rate raised by Federal Reserve Bank.
