Part of the rationale to hold an investment mix including both stocks and bonds is they can work like a see-saw. When one goes down in value the other can go up and help offset losses all while keeping your investments diversified.
In the current environment the see-saw is broken: BOTH stocks and bonds are declining in value.
It is rare for both stocks and bonds to both end a calendar year with a loss. The last occurrence was 1994 during a similar environment with a Federal Reserve aggressively raising interest rates (then under Chairman Alan Greenspan).
Drawing from history we might expect either stocks or bonds to make a comeback by the end of the year and if not then next year.
You don’t want to sell out of stocks or bonds and “cut off” one side of your see-saw. Instead stay diversified. Consider Rebalancing. Wait for the recovery.
Past performance is no guarantee of future results. Diversification does not guarantee a profit or protect against a loss.