For many retirees, their investment portfolio consists of a mix between stocks and bonds. In a deflationary environment, the two asset classes are inversely correlated. i.e. bonds up, stocks down. The below chart highlights certain deflationary events that sparked a decoupling between stocks and bonds i.e. dot com bubble burst, 2006 housing bubble burst, and the 2007-2008 Financial Crisis.
Nice summary and important reminder of the facts🍀