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REDDIT

Why are bonds considered a better “safe haven” compared to cash?

E
Feb 13, 2025 · 01:18

I was looking at this chart I found, that shows the year end returns of different investment types over the past several years.

In years where there was a significant decline in the stock market, while it is true that bonds sometimes did better than straight cash, overall it seems like bonds often take a hit (negative returns), while cash is at least safe from those negative returns.

So the question is… why bonds? Why not cash?

Chart: https://www.callan.com/periodic-table/