This slide helps put the bear market in bonds in historical perspective. The bars in the chart show the total return for the Bloomberg U.S. Aggregate Bond Index each year since 1976, the inception of the index. The red dots show the largest peak to trough decline that occured each year. History shows that bear markets for bonds are more like koala bears than grizzly bears, given the average intra-year decline on average is just 3.2% per year vs. an average decline in equities of 14%. Further, after bad years of performance, bonds tend to deliver strong returns in the years following.