By Jon S. Strebler
Historically, bonds and stocks move in opposite directions as the macroeconomic picture changes over time. Generally, this is because as the economy slows down, people sell their stocks and place money in bonds, which are usually safer investments. Stocks go down, bond prices go up. The flip side is when things are looking up for an economy; people sell their safer bonds and go into stocks, where their profit potential is greater. In that scenario, bonds go down and stocks rise in price.