Conventional wisdom tells us that bonds and equities should typically move in opposite directions given the negative correlation between them. The top chart shows that even though this is often the case, the correlation between stocks and bonds varies across time, and can sometimes even become positive. The bottom chart highlights the benefits of a well-diversified portfolio with both fixed income and equities. The green and blue line represents the total returns of global equities and fixed income since 2006, respectively. The grey line represents the total returns of a diversified portfolio since 2006, showing that a diversified portfolio can help to reduce volatility of returns. Therefore, it is advisable to stay invested for the long term in a diversified portfolio.