This week’s chart highlights that stock-bond portfolios are experiencing one of their weakest months since 2022. The sharp decline in March 2026 is similar to what occurred in 2022, when both stocks and bonds fell at the same time due to inflation concerns. This time, however, concerns surrounding the conflict in Iran are also contributing to market volatility. Normally, bonds can help cushion stock market declines, but rising interest rates, or even the possibility of higher rates, often put pressure on both asset classes simultaneously. Higher interest rates typically lower bond prices because newer bonds are issued with more attractive yields. Stocks can also decline as higher borrowing costs may slow economic growth and reduce corporate profits. It remains to be seen how the conflict in Iran will affect inflation, interest rates, and ultimately both the stock and bond market profits.